Where to Invest $500 Right Now
Congratulations! Setting aside five Benjamins for your future is no easy task. Whether you want to invest for retirement, future college expenses, or financial independence, you've taken the first important step.
So you're thinking, "OK, now what?" Luckily, it's never been easier to put your money to work. We'll look at a few investments that are great for getting started. But first, here's some perspective on what happens with your money when you invest in the stock market.
To understand market returns, the S&P 500, an index made up of 500 of the largest U.S. based stocks, is a great proxy. It has returned about 10% annually on average over long periods of time, but each year's returns vary considerably. The graph below shows its annual returns for the last 31 years before dividends. You'll notice that not every year is in the positive range, and some gains are in the low single digits. The worst year was 2008, with a 38.5% decline, and the best year was 1995, with a 34.1% gain.
Source Fool.com
