What should you know?
Consider a plane that is setting off from Los Angeles, destined for New York. If the pilot accidentally adjusts the route by just 3.5 degrees to the south, it will end up in Washington DC.
This small change is barely noticeable when taking off, but by the end of the journey, the plane will be hundreds of miles away from its intended destination.
Your finances are no different. Small actions today can drastically change your outcome, for better or worse, when compounded over many years.
Why should you care?
Owning a globally diversified portfolio of stocks makes you the part-owner of the companies we all buy goods and services from on a daily basis.
These companies work tirelessly on your behalf to generate profits without you having to do anything. As a stockholder, you receive your share of the profits (dividends) and benefit from increases in the share price as the companies you own grow and become more valuable.
Investing in stocks is a simple way to participate in, and benefit from, the continued advancement of the global economy and the human ingenuity that drives it. It doesn’t have to be costly or complicated and is something every family should take advantage of.
