The stock market is racing toward the close of its best year in a decade, with the S&P 500 up about 27% in the past 12 months.
For some, it’s a matter of means. Median wages in the U.S. have fallen to the lowest level since 1998, and it’s hard enough for a typical family to get by, let alone worry about investing.
For others, it’s a matter of inexperience. Jumping into the market even in favorable market environments like this one still involves risk, and it’s hard to know where to start.
My advice? Start small — and start simple.
Consider that if you invest $1,000 this year, then another $1,000 each year afterwards, in 25 years you can grow that savings to a $50,000 nest egg with a modest 5% return. At a 10% return, your gains jump to $108,000.
And if you can manage to scrape together $5,000 a year and invest? You’ll wind up with $250,000 in 25 years at 5% and $540,000 at a 10% return!
That’s the power of compound interest!
So even if you think the amount you save isn’t all that large, if you save consistently and over the long term, that cash can add up in a hurry.
If you’re wondering how to get into this market and grow you’re money, here are five easy ways to invest as little as $1,000 now and start down the path to retirement success: