q19821209

MONEY
How To Get Rich...Slowly!
Investing is a smart way to make your savings grow
by Lewis Schiff

People can invest in their own business, such as a contract cleaning or a car service. If the business does well, the value of the person's original investment goes up. But individuals can also invest in other people's businesses. They can do this through the stock market. That is how many millionaires have made their fortunes.

People who invest in the stock market buy stocks and shares entitling them to ownership of a small part of the company they have chosen to invest in. If the value of the shares goes up, the people who own those shares make money. Millions of people are investing in stocks and shares in the USA, UK, Europe and Asia.

Professional investors can show that the stock market seems to go up most of the time. That does not mean that the stock market will not go down next year. The shares people buy today may be worth less tomorrow.

It is possible for people who do not have a lot of money to invest a small amount in the stock market each month. In fact, this can prove a reasonable way to invest. The value of the shares can grow over time. Look at the following example. If someone invests $100 a month every month for 40 years, they will invest a total of $48,000. If someone puts the money in a fund invested in the stock market, there is a good chance, based on historical performance - that they will receive an 8% return or interest on their annual investment. At the end of 40 years, their outlay of $48,000 will - on this growth model - reach an accumulated total value of $351,428 assuming all profits are reinvested in the fund.

People invest in the stock market through stockbroker broker firms or financial management companies, such as Charles Schwab and Merrill Lynch. It is easy in most countries to buy shares of companies on the stock market over the phone or on the World Wide Web through financial management companies like these.

These companies can advise small investors on how to put their money to work. They may suggest that the investor buys stocks. They may suggest mutual funds. Mutual funds are great for small investors because the individual's money is managed by professionals who have detailed knowledge of the stock market and how companies are performing at any given time.


There is one lesson about investing that everyone must understand. Everyone invests at their own risk. If someone invests in companies that do not go up in value, they can lose some or all of their invested money. Each person is responsible for his or her own investment choices. If a person invests well, their investments will go up more often than they go down.

There is a reputable site on the Internet that teaches people saving and investing methods. It is called the Armchair Millionaire. You can find it by going to the URL: http://www.armchairmillionaire.com on the Web. However, do remember to get independent advice before making any serious investment decisions.

生字
investment (n.) 投資
accumulate (v.) 累積
profit (n.) 利潤
mutual fund 共同基金
reputable (n.) 極獲好評的