Stories Like These Never Get Old!

Investing in the stock market is one of the few topics I never get tired of talking about. Reading stories about average Joes and how they built wealth really gets me excited!

Today I want to share a thread I found on Reddit. It really shows the power that introducing your children to investing can have.

I’ve been browsing Reddit lately, as occasionally participants on the threads there will link to my articles.

Last night, I found a post that excited me and warmed my heart. As you can guess, it was about money invested in the stock market that grew exponentially and substantially over time.

The poster, who goes by the handle LordPounce, told a wonderful story about how he was introduced to investing.

As it turns out, LordPounce’s father was a stockbroker. When Lord was 18 years old, he received a letter from his father’s brokerage firm addressed to him. When he opened the letter, he realized it was a brokerage statement that had about $10,000 invested in 10 different stocks.

When he asked his father about the letter, his father’s reply was “now that you’re 18, it is your money and you can do with it whatever you like; however, my recommendation is that you discuss it with me first.” As Lord was about to enter college, his father advised him to forget about the brokerage account until he graduated.

Following his father’s advice, he did not check his brokerage account again until he was about 22 years old. In that five-year period, he discovered, his account had doubled in value!

These results made him so excited that he immediately took a few thousand dollars he had saved and invested in more stocks.

After graduating from college, he moved overseas and took a rather low-paying job. Throughout this time, he was committed to his investment account, and never touched one penny over the next ten years.

Throughout that time, we had the Great Recession, in which the stock market fell by 40%. One of the most important things our friend was able to do was to not panic and sell at the worst possible time. He held on to his investments, and eventually the market recovered.

A few years later, his grandmother passed away, and left him $100,000. He put it almost entirely into stocks.

Throughout the next five years, he would occasionally sell a little bit to fund a vacation. But he left the majority of it alone. For the most part, he didn’t even look at his account.

A few years ago, he asked his sister – who is now his broker, since his dad has retired – what his account was worth. She told him at the time that it was worth $500,000.

Fast forward to 2019, and his account is now over $700,000.

His ultimate goal is to be at $2,000,000 before he is 50. He is currently 37.

This article exemplifies 1) the power of compound interest; and 2) starting out as young as possible. This young man is 37 with over $700,000 put away for retirement. I don’t think there’s any doubt he will hit $2,000,000 before he’s 50  – and by the time he’s 65, I bet he could be at $5,000,000 or more!

I absolutely love finding stories like these…and will share them every chance I get!

Check out the whole Reddit thread here.

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)






Sorry…We Don’t Accept Cash!


The “war on cash” is very real.

I am starting to hear about more and more retailers no longer accepting cash.  In fact, some companies, such as the restaurant chain Dig Inn pictured above, are making it against their policy to accept cash as payment.

I also look at my own spending habits for example.  I have reached a point in my life where I hate using cash.  I use cash for three purchases: to do laundry in my building, to get my beard shaped at the barber, and to get taps put on my shoes.  Other than that, I never use it.  I would bet that your list of expenses you absolutely must pay in cash is similarly short.

The trend towards a cashless society is on the horizon, and banks are taking notice.

Want to invest in this trend?  If so, I think Square (NYSE: SQ) would be a great choice.

Square is the innovative merchant services company serving small to midsize businesses.  If you have made a debit or credit card purchase from a smaller vendor, signed using your finger, and had your receipt texted to you, chances are that the transaction was processed using Square.

The stock was up 44% in 2018, and that’s after being down 38% from its 52-week high.  Square is taking market share from banks with its Cash App, which allows people to transfer money to one another via their phones.  The company recently applied for a banking license.

Square represents the future of financial payments.  It’s definitely on my watch list, along with these other stocks.  It should be on yours as well!

Talk to you tomorrow.

Disclaimer/Disclosure Statement: Information in this article is not intended to be a recommendation to invest in any stock.  Rather, it is presented for readers’ education and consideration when making their own investment decisions.  The author has no position in any of the stocks mentioned in the article.

*  The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats.  If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others!  Thank you. *