Investing can be taunting. That must be why just half (56%) of Americans self-
report owning stock. However, if you break it down by age it tells a different story. Of the 18-29 year olds interviewed, 39% reported owning stock. While roughly 60% of every other age group (from 30-65+) reported owning stock. Just imagine if those other 61% of the 18-29 year olds knew the power of investing. They could have had additional YEARS, and in some cases decades, of additional compounded ~7-10% growth in something as simple as an encompassing index fund and/or ETF. Such as the Vanguard Total Stock Market Index Fund; ETF (VTI). It really can be as simple as that and why wouldn't you want to do something that 89% of Americans making $100,000+/year are doing? *Ref. 1-3
Why are there so many afraid of investing? If you ask me, I will answer that with one word, knowledge. There is a knowledge gap in America, and I am sure it applies to most of the rest of the world too. People fear what they do not understand and if you know anything about the American public school system you know that they are NOT teaching financial literacy. Therefore, people who have not, and have families that have not, interacted with any sort of wealth are surely illiterate in the subject. Knowledge can be a slippery slope, if you are fed incorrect knowledge at a vulnerable time, you could potentially be trapped by this fallacy. It is of upmost importance that you learn to receive and then filter information. If you are illiterate, you must become literate. I am forging my own journey forward each day becoming more and more literate in life.
That's where The Cognitive Investor comes along. I want to build a community that helps support each other by sharing ideas, having intellectual conversation, and teaching each other how to start investing or how to become an even better investor. I am in the nascence of my journey to becoming the best investor I can possibly be. I want to take you on this journey with me. Join me as I learn and spread more knowledge about the stock market and overall financial literacy. After all, financial freedom is not obtained without financial literacy.
*What Percentage of Americans Owns Stock? by Gallup
References
1. Lydia Saad and Jeffrey M. Jones. (2021, November 20). What percentage of Americans owns stock? Gallup.com. Retrieved January 28, 2022, from https://news.gallup.com/poll/266807/percentage-americans-owns-stock.aspx
2. Maverick, J. B. (2022, January 21). What is the average annual return for the S&P 500? Investopedia. Retrieved January 28, 2022, from https://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp
3. Vanguard ETF profile. Vanguard. (n.d.). Retrieved January 28, 2022, from https://investor.vanguard.com/etf/profile/VTI
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