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Is the S&P 500 the Easiest Way to Get Rich?

By 
Eve Halimi

What do companies like Apple, American Express, Tesla, and Johnson & Johnson have in common? They are on the S&P 500 stock exchange.

Composed of 500 of the biggest publicly traded companies in the country, the S&P 500 has become a popular investment approach.

Established in 1957, there are more than $5 trillion dollars invested in S&P 500 index companies. Investing in the stock market requires risk, but investors can reap great rewards.

Continue to read to learn more.

What Is The S&P 500? Why Is It Influential?  

Since the S&P 500 is the most prominent stock exchange index in America, it has earned great influence in the investment industry. The success of the S&P 500 has become an indicator of the stock market's well-being and growth.

One of the benefits of investing in the S&P 500 is that is a long-term strategy and that it is less risky than other stock market alternatives.

S&P graph over time / Source: NYTimes

Do Not Expect To Get Rich Right Away

The S&P 500 can bring in lucrative rewards. One only has to look at its history to recognize this. Investing in an index portfolio is different from selecting specific stocks, however.

Yes, one can select individual stocks to invest in such as Microsoft, but it is often recommended to select a portfolio to diversify investments. There is truth in the saying, do not put all of your eggs in one basket.

One of the good things about an index portfolio is that one can make minimal investments each month. If you only have $50 or $100 to invest every month, that is completely okay. You will earn money, but it requires patience.

This is why it is important to start investing at a young age. If you are a high school or college student, right now is the perfect time to start your S&P 500 investing.

Remember to only invest what you feel comfortable with. There is no need to invest thousands of dollars unless you have the means and desire to do so. The more you invest, the higher the risk. The higher the risk, the greater the reward.

The S&P 500 Index Will Not Make You A Millionaire Tomorrow

While the S&P 500 will not make you a millionaire tomorrow, you can expect a steady and reliable source of additional income. Small investments in the S&P 500 will not eliminate the need for a day job. What it can provide is some additional income that will be comforting to have.

Continuous investments in the S&P 500 over a long period of time can earn attractive retirement funds. You may not earn considerable money within the first few years, but over time, your earnings can become quite significant.

More aggressive stock market investing can become a main income source quicker. If you have the capital and a healthy knowledge of the market, wise investing can help you never work a 9 to 5 again.

Start Investing With Alinea Today

Investing in the S&P 500 has great benefits for new and veteran investors. No matter the size of your investment, you can see real results.

Alinea is the start of something new. We want to completely revolutionize how the next generation invests. With our app, you can invest smartly and invest in causes you care about. Investing for beginners has never been this enticing!

Earn financial rewards while you support companies that strive to make a difference in the world. To learn more about our company and how we can help you begin your investment journey, we invite you to join our community today.

(i) Disclaimer

The Content is for informational purposes only, you should not consider any such information or other material as investment, financial, or other advice. Nothing contained on our Site constitutes a solicitation, recommendation, endorsement, or offer by Alinea Invest or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction. When investing your capital is at risk.

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