The Only Investment You'll Ever Need... (Probably)

Investing your disposable income is crucial to building your wealth and achieving financial success.

But, there are still several barriers to entry for investing, and the main one being fear.

Many people are still fearful of the potential risks that are involved with investing, but the truth is, this doesn’t have to be the case.

But, these risks become obsolete when you become aware of risk-off investments like The S&P 500.

Depending on your goals, this could be the only investment you’ll ever need.

What is The S&P 500?

The Standard & Poor’s 500, or S&P 500 for short, is an investment fund which tracks the prices of 500 of the largest publicly traded US companies.

All 500 of these companies are inclusive of one fund, meaning you don’t need to go and buy shares of all 500 companies.

You can get a piece of them all, just by investing into the S&P 500.

It’s an investment fund millions of investors buy into regularly, because of it’s risk to reward ratio.

The reward is very high, but at the same time, the risk is low, for the reasons I’ll get into soon.

The S&P 500 is the perfect place to start your investing journey.

You don’t need to take on the risks of investing into individual stocks.

You don’t need to sit and research companies for hours.

You can eliminate all of the negative investing myths and stereotypes by investing into the S&P 500.

Benefits of The S&P 500

Healthy Historic Returns

The S&P 500 has generated healthy returns for investors for decades, netting an average annual return of 8–10% since the second world war.

This means it’s comfortably ahead of interest rates over any substantial time period, and it’ll help your wealth outpace inflation, which is constantly eating away at the value of fiat currency.

Due to the strength and growth of the US economy, The S&P 500 continues to act almost like a safe haven for investors.

They know that over the long term, they’ll always make a healthy profit.

Diversified

Given the fact that The S&P 500 has exposure to 500 different companies, it tells you that it’s well diversified.

It’s diversified by:

• Size (market capitalisation)

• Industry (finance, pharmaceuticals etc.)

And more.

In fact, the only thing it isn’t diversified by is location, but you can always invest into other ETFs if you want exposure to international markets.

Despite this, one of the best things about The S&P 500 is that it cleans up after itself.

If one company isn’t performing, or fails altogether, it will be replaced with a better one, making the fund even stronger.

Set And Forget

You don’t need to keep up to date with what’s happening inside all of the 500 companies.

Like I just said, the fund cleans up after itself.

Badly performing companies are replaced with ones that are performing better, meaning the investor (you) always wins.

This means you can invest regularly, sit back and watch the profits roll in, without the need for extensive research.

The Perfect Investing Strategy

A lot of seasoned investors will tell you that there’s little need to invest into anything else other than The S&P 500.

For the most part, they’d be right.

When it comes to investing, your rate of return isn’t always the most important factor.

What’s more important, is your rate of return in relation to how much work you’re putting in.

So, if you can get an 8–10% annual return for doing 0 hours of work, you’re better off than someone who gains 12% but spends 2 hours a day trading.

See what I mean? It’s about opportunity cost, and the S&P 500 is the perfect example of this.

There are millions of investors implementing this investing strategy, and it’s so simple you can get started today.

Open An Investment Account

Find an easy to use investment account available in your region.

For UK residents, I like Trading212, but it’s worth doing a little bit of research before you jump in.

Find An S&P 500 ETF

Once you’ve signed up, identify an ETF which tracks the S&P 500.

The most popular ETF is $VOO, the Vanguard 500 ETF.

Automate Regular Deposits

Automate your deposits you you never need to put any extra work in than you need to.

Make it just like any other bill coming out each month, except this one is going towards building generational wealth.

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