"Should I really be investing in stocks?"
There are things that people should do before investing (pay down high interest debt, build an emergency fund, etc...).
Assuming you are ready to invest long-term capital...
Owning a low-cost diversified portfolio of the best companies in America is an efficient and effortless way to build wealth.
Why do we invest? To maintain and INCREASE purchasing power!
THE ENEMY
Inflation - it drastically erodes our purchasing power over time.
Trendline inflation of 3% turns $100 into $41 over 30 years...
Using the historical worst 30-year rolling returns for the S&P 500 (8%), $100 turns into $1,006 over 30 years...
If you had $100 bill today and a burrito costs $10, your purchasing power is 10 burritos.
Do nothing with the $100 bill and in 30 years, you can purchase approximately 4 burritos.
Invest the $100 bill and in 30 years, you can purchase approximately 41 burritos ($24.27/burrito).
"Should I really be investing in stocks?"
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June 02, 2026