Rule Du Jour: Rule #45 Own Stocks (Patreon)

I know it sounds alarming..... Earning Wages WILL EAT YOU ALIVE! - BUT "You need to own stocks to survive" reflects the reality that to maintain or grow wealth in line with the economy, you must own stocks!

Since 1971, the US economy (GDP) has grown by $28 trillion, from $1.2T to $28.3T - a 24x Where's it all going? The total value of the companies in the S&P 500 has actually grown faster than GDP, growing by 75x Versus GDP, the average American's wages have fallen by 90%. Puyt another way in simple math

If you had $100 in 1971:

• Invested in the S&P 500, it might be worth $7,500 today (75x growth).

• But if you were earning wages, and wages only grew in line with 10% of GDP growth, your income might only be $240 in today's terms (assuming the same base growth rate as GDP but adjusted for the 90% fall).

Why Owning The Right Stocks Makes You Wealthy Over Time

• Stocks outpace inflation and wage growth.

•  If you invest $10,000 in a stock that grows at 10% per year, after 30 years, without adding any more money, your investment would be worth approximately $174,494. This assumes better than the S&P500

• When you own stocks, you're entitled to a share of the company's profits through capital gains and dividends. Companies that are profitable and grow their earnings over time tend to see their stock prices rise, which directly benefits shareholders.

• Wealth Accumulation: Over time, owning stocks can lead to wealth accumulation, especially if one invests in companies that grow faster than the economy; hence, I only invest in disruption!

Summary

Do what the rich do - The top 1% own more than 50% of stocks and mutual funds, while the top 10% own close to 90% of the same. The bottom 50% pretty much own none!