What if someone just wants to have a place to live and doesn’t want to pour money into the global extraction machine that index funds are?
Also saving $500 a month?? Lots of people pay half their salary on rent and the rest on food and bills - good on your friend for having the privilege to afford that but like what are the rest of the population supposed to do?
First, the 500$ number is used for comparison sake, the point is that my friend getting 1m to dump in the market all at once in 25 years doesn’t beat him investing the difference between a mortgage on the average duplex vs the price of the average apartment where he’s at.
Second, if you’re two people renting an apartment together and are unable to save 500$ a month then I’m sorry to tell you that you wouldn’t be able to afford owning a house either.
Third, if you plan to retire someday then you should start making your plan while you’re young and start investing. Even if you don’t do it yourself because you’ve got a pension fund at work, that money is in the markets so you’re not escaping it. If you plan to work until you die then have fun with that. If you don’t invest, whatever you’re saving under your pillow is just losing value over time.
What if someone just wants to have a place to live and doesn’t want to pour money into the global extraction machine that index funds are?
Also saving $500 a month?? Lots of people pay half their salary on rent and the rest on food and bills - good on your friend for having the privilege to afford that but like what are the rest of the population supposed to do?
First, the 500$ number is used for comparison sake, the point is that my friend getting 1m to dump in the market all at once in 25 years doesn’t beat him investing the difference between a mortgage on the average duplex vs the price of the average apartment where he’s at.
Second, if you’re two people renting an apartment together and are unable to save 500$ a month then I’m sorry to tell you that you wouldn’t be able to afford owning a house either.
Third, if you plan to retire someday then you should start making your plan while you’re young and start investing. Even if you don’t do it yourself because you’ve got a pension fund at work, that money is in the markets so you’re not escaping it. If you plan to work until you die then have fun with that. If you don’t invest, whatever you’re saving under your pillow is just losing value over time.