In this week's Arista Advice, Paul L. Moffat of Arista Wealth Management discusses the most effective and effortless way which anyone can use to build real purchasing power.
Hello, welcome to this week's Arista Advice. Hope you're well and having a great week. Question of the week is - Paul, what is the most effective way to build real purchasing power by time?
Let me share with you a statistic. In October of 1957, the S&P 500, the broad market index, was at $41 per share. Today, it's hovering near 3,000 having gone above it, having gone below it currently. During that time the S&P 500 has gone up 70 times. Dividend paying indexes are up 30 times, and the consumer price index is up nine times. The takeaway? The most effective and effortless way of protecting real purchasing power, which is a real threat for all people, is to buy the broad markets.
Three steps to remember:
Number one stay invested in the broad markets with low cost investments, with broad diversification, and clear transparency of what you own.
Number two stay invested long-term in a short-term world.
Number three avoid the media at all cost. Their job is to mess with your anxiety, lower your confidence, and stay tuned in to their broadcasting and their commercials and their advertisements.
Hope you're well. Have a great week. We look forward to talking to you soon.