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Since 1926, the average annual return on stocks has exceeded 10%. The return on bonds has been 5% and on cash reserves less than 4%. If you invested $167 per month ($2,000 per year) for 25 years, you would have $221,581 at 10%, $99,450 at 5% and $85,860 at 4% earnings. With higher returns through the stock market, it is no wonder that more investors buy stocks and mutual funds each year. Although stocks offer the potential for higher returns over bonds and cash reserves, they also expose …

…all your money in a company that you know nothing about is one way to loose all of it. The examples I used are established companies with a good history of returns, making them more stable investments (I do not recommend nor oppose buying them, but only listed them purely as examples). In future articles I will discuss researching, analyzing, and buying as well as different terms used in the stock market trade. ------------------------------------------------------------------------ **Bibliography**