If you’re getting started with investing, you shouldn’t feel discouraged if you don’t have any savings built up.
Over time, investing in the stock market and letting your money grow can be a great way to build up your savings and portfolio
Even if you’re starting with $0 in your portfolio, if you make monthly contributions on a regular basis and invest in an index fund that gives you broad exposure to the stock market, you could still end up with more than $500,000 in 25 years, without having to take on significant risk. Why tracking the S&P 500 can be a solid investing strategy If you’re committed to investing for the long haul (e.g., at least a couple of decades), a diversified index fund such as the SPDR S&P 500 ETF (NYSEMKT: SPY) can be a great option. It tracks the S&P 500, which is a collection of the leading stocks on U.S. markets.
You won’t have to worry about which stocks to buy or which ones to avoid. The index comprises high-quality stocks with strong financials, which can be great long-term investments. Historically, the S&P 500 has averaged an annual return of about 10%.