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According to a Gallup poll, 62% of Americans reported owning a stock in 2025, reflecting a growing trend in retail investment despite market volatility since the pandemic began in 2020. Retail investors typically seek to save for retirement amid rising living costs, with many relying on investments in stocks, index funds, and ETFs to build wealth over time.
The S&P 500 has generated compound annual gains of 10.4% between 1965 and 2024, equating to an overall gain of 39,054%. This means that $1 invested in 1965 is worth $390.54 today, underlining the importance of long-term investment strategies in safeguarding purchasing power against inflation and optimizing potential returns.
In 2025, contribution limits for retirement accounts are set at $7,000 for IRAs and $23,500 for 401(k) plans for those under 50, emphasizing the tax advantages associated with investing. As financial responsibilities grow with age, starting to invest early can lead to significant financial benefits and greater financial freedom in later life.
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