Getting rich simply long term December 12, 2018 admin Post in Uncategorized getting rich simply long term Why a long term vision is important to getting rich simply One of the most important factors in getting rich simply is time. In my experience, one of the facts of life in in the investing world is this: Older people usually have money but less time; younger people have no money but lots of time. So let’s begin. Say you’re 20 -25 years old or older and you want to begin accumulating riches. There are plenty of getting rich schemes on the Internet. However, the quicker the get rich scheme usually the higher the risk. The philosophy behind this strategy is to get rich over time. Using a baseball analogy, it’s great to hit home run but many coaches will use a “one base at a time” and up their score. What are the advantages and disadvantages to this approach. Advantages Time. It’s been proven that the stock market over time is the place to be. The last 50 years the stock market has given us approximately 10% a year. However, this is an average. The 1950’s gave more or less 16% while the 2000’s gave us more or less 3%. You see why time is important.Emotion. Emotion is the biggest killer in the markets. When you’re checking your account every day to see if it’s up or down, this is where emotion comes into play and often becomes you become your worst enemy. I mean, if you had a garden and you had planted carrots, would you honestly pull them every day to see if they had grown?Easy. Long term is easier than short term. This is why. Short term has more volatilty (prices go up and down withiun a wider range). Emotions come into play.History is on your side. Today, we have more historic data than ever before. It’s as Winston Churchill once said” He who does not know history is condemn to repeat it”. See TimeThe pro’s are on your side. People like Warren Buffett (Berkshire Hathaway (NYSE: BRK.A), John C. Bogle (Vanguard Funds) https://about.vanguard.com Sir John Templeton (Templeton Funds) www.franklinresources.com all are believers in the long term.Costs. Trading fees like commisions and also capital gains taxes are all about your costs. Less you trade, the less your costs and therfore the less taxes you pay.Sleep. Yes, sleep is actually an advantage to long term investing. Over the long haul you will sleep better knowing that in the long term the stock market will reward you for you patience. Disadvantages It would be unfair not to give the reader the other side of the coin to getting rich simply long term. Here they are. Boring. It is boring even unsexy to getting rich simply long term. Why? Because when your friends are all bragging about how they made 50% on a particular flavor of the month stock (Trust me, they won’t tell you about the one they lost 70%). You’ll be like the who’s getting rich simply and long term.Patience: To go this route you need to have patience. You need to look at 10 years or more. So if you’re 18 years old, great. If 75 years old, not so great.Hype. It’s difficult to sit on perhaps a 6-7% return yearly when the noise are talking about double digits returns on the next great stock. Noise! The biggest challenge you will have in getting rich simply is putting up with the noise around. You see when the market goes up, everone including the media get over optimistic. When the market goes down, the media gets over pessimitic. There’s the challenge. Warren Buffett said it best. “Be greedy when others are fearful and be fearful when others are greedy. Investing isn’t complicated when you have a plan to get rich simply.https://gettingrichsimply.com/plan-being-rich/ Putting it all together There you have it. The pro’s and con’s. Getting rich simply means not to overthink it. Have a plan, look at the long term time frame and start to invest now. In future posts, we’ll look at how to invest even if you don’t have much cash. Tell me what you think. Leave a comment.