Wed Dec 25 2024, by Tyler Gardner

Three Essential Lessons for Successful Investing

Here are the three most important things you will ever learn about investing.

I'm Tyler, a former financial advisor and portfolio manager. Now, I create financial content for free so that you don't have to pay for it.

1. Low Cost Index Funds are Your Best Friend

I promise, you don't have an edge on those of us who do this for a living. Those of us who do this for a living don't have an edge on computers that do this for a living.

2. Invest When the Market is Overvalued

When the market is overvalued, invest. When the markets are getting destroyed, invest. Remember to invest on the second day of each month, so it sticks in your mind. This is something you can do forever.

3. Use the DRIP Method for Retirement Accounts

When you first set up a retirement account or a brokerage account, this is crucial: click the button that says 'reinvest dividends' if you don't need them for cash flow. Because the Dividend Reinvestment Plan (DRIP) is one of the single most effective methods for truly building long-term wealth.

For instance, $100,000 invested in 1990 would have returned about $1.1 million without dividends reinvested and $2.1 million with dividends reinvested. It's a no-brainer.

If any of this is helpful, like and follow, and I'll keep trying to get you one step closer to where you need to be.