The worst financial advice I have ever heard
I once heard someone say “I have some money to invest, but I am not sure what I should put it in”. Then, some dumbshit said the stupidest financial advice I had ever heard.
“You should just put it in a savings accounts because the stock market sucks and you won’t have to worry about losing it in your savings account.”
Maybe if this person needed this money again in a week or month, then it would make sense to put it in the bank. But this guy didn’t want to sock it away for a month. He wanted to start saving long term for his retirement and this dumbshit told him to put it in his savings account. You have got to be kidding me.
I know over the past 18 months, the stock market has had it’s ups and downs, but look at history. Anyone who is willing to put money away and invest it for a long period of time, would be smart to put it in stocks. The average annual return on the stock market is between 9-12% (depending who you ask). You know what my savings account is? it’s 1.1% which is actually extremely high for a savings account. Putting long term savings into a savings account is just plain stupid. If you have money you want to save for the long term, be smart and put it into a mutual fund that follows the market (that way you don’t have to try to pick and choose stocks) and then sit back and watch your money accumulate over time.
