Q&A: Will investing really make you rich? How do you know what to invest in to become rich?

by Center for American Progress Action Fund

Question by Dion: Will investing really make you rich? How do you know what to invest in to become rich?

I've heard that people do become quite rich from investing. How do you know exactly what to invest in, in order to become rich, and how long does it actually take for investments to make you rich? I'm 40-years-old, and would love to be rich while I'm still in my 40s, instead of waiting til I'm 60 or 70.




Best answer:

Answer by MVD34
Yes and no.

Yes for the people with insight, skill, access, and money. No, to everyone else.

As a practical matter, you must save like a mad dog to build a nest egg and learn both your particular skill (if you have one) in the market place and the rules of the game. 40 is about the age when the typical "average man on the street" puts it all together, if he is going to...but, once again, I am assuming you have what it takes.

At the same time, there is something to be said for both the argument about getting rich slowly and that rich is what rich does.

(a) You need a nest egg...at least 0,000...to start investing for wealth. Unless you have a rich aunt who is also very sick, such a nest egg isn't going to arrive without serious effort on your part. To make investing your career, you need more...a lot more. million is a good start.

(b) As a practical matter, I'll leave the platitudes about "feeling rich" to others, but there is a difference between rich and really rich. I am a millionaire, but it is because I DON'T spend my money...I have continuously invested huge amounts of it. My lifestyle would not be possible for most people (they would have spent all the money rather than investing it) nor would it make many people happy. I do not have, nor will I ever have, enough money to do whatever I want. That is the definition of "really rich" and that is out of the hands of 99.9% of the population. (Timing & luck & talent that you cannot control)

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