Finance Friday: The Stock Market & Dollar Cost Averaging
The stock market is probably the easiest way for the average person to start investing. It is an investment vehicle that can be volatile meaning it can go up or down, but when you take a long term approach, the stick market has generated an average return of ~7% over the last 100+ years.The stock market isn’t going to make you rich, but it’s going to get your money moving and growing, over time. As of today July 29, 2022 the S&P 500 is down about 15% year to date, after a jump of about 6% in the last week. I believe the stock market will continue to go down over the next 6-18 months, but I also believe dollar cost averaging and keeping a long term mindset is smart right now. Dollar cost averaging is the practice of investing a fixed dollar amount on a regular basis, regardless of the share price. It's a good way to develop a disciplined investing habit, be more efficient in how you invest and potentially lower your stress level—as well as your costs.In essence, it’s investing day $25 a week into an index fund or Apple stock, automatically, every week. This is a way to pay yourself first and ensure you are investing. You can either hire a financial advisor or you can invest in your own. I like the Robinhood app because it’s free and easy. Check out the Robinhood app here: Robinhood App--Let's Connect!To get more info and updates on the podcast@gettingmagneticFollow our personal Instagram accounts@sandyclaus7@wellnesswithwadeCheck out our website for all things Getting Magnetichttps://www.sandyandwade.com/