The 40 Year Plan to get Rich Personal Investing The 40 Year Plan to get Rich

What are you actually investing in In order to assume an expected return of 8%, your money must be in the stock market Most common way to do this is Mutual Funds

What is a mutual Fund? Mutual Funds are combinations of dozens (or possibly hundreds) of different stocks Mutual funds are usually managed by professionals. These managers will constantly shuffle the mix of stocks so as to maximize value and remove lower performing investments. Fees involved! Do your research to find mutual funds with the lowest available fees

Benefits of Mutual Funds Someone else is doing the heavy lifting You can re-allocate your portfolio at any time to reduce/increase risk/reward Your money grows slowly in the background, while you deal with actual life

Things to remember You want to find a mutual fund with lowest possible fees Look for a mutual fund where dividends are reinvested Be risky in your 20s, 30s and early 40s. Then be conservative as you get closer to retirement