ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Economics 104

Updated on April 9, 2020
jackclee lm profile image

Before retiring, Jack worked at IBM for over 28 years. His articles have over 120,000 views.


Despite the disadvantages placed on the average investor, there are ways to participate in this wealth creation and growth. Understanding how the system works is just the first step. The next step is to position yourself to take advantage of all the wealth that is available. There are millionaires created everyday.

- April 2020


Wealth creation is about making good choices. There are many elements to that. I will touch on a few of them. It starts when we are growing up and choosing our careers.

  • education
  • career
  • saving and investing
  • retirement planning

Choosing the career path is important since it dictates what kind of higher education that is required. Education and knowledge is accumulated wealth. Wealth is not always about money.

A career for most of us lasts 3 or 4 decades. This is our main job. It is where we earn the bulk of our salary and make our dent in the world.

Saving and investing goes hand in hand and it starts from the day you leave school and enter the work force.

Retirement planning is something most people don't think about until it is too late. It is advised that we start thinking and planning at least 10 years before retirement.

Personal Investing...

The economics of personal investing is very simple. Time is your friend. The sooner you start, the better you will be. Regardless how much you make or how high a position you may have, it is how much you save and put away that dictates how well you will end up.

"Time is money" is really true. The more time you have, the more money you can make. In the first tutorial, I said money is labor. Labor is time performing some function. In addition to that, there is an escalator where money saved and invested will grow or compound with time.

Checkout the following chart. An investment of just $10 per day, over 45 years with an average return of 7% will make you a millionaire.

How Do You Get 7% Return?

It seems simple enough but how can anyone get 7% return these days? Most banks and CD are only paying less than 1% interest.

The only answer is the stock market. The S&P index has on average risen 7% per year for the last 40 years. Moreover, in any time slice of 10 years period, the S&P has never gone negative. Think about that. This has an important implication for investors.

It means, as long as you are a long investor, with a long horizon of 10 years, you can invest in the stock market without fear.

The only caveat is that you keep enough cash on hand to carry you over a few years of major corrections.

Plot of the S&P Index Over Last 40 Years


In this tutorial, I have demonstrated that anyone can retire comfortably if they make the right choices.

This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.

© 2020 Jack Lee


This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

Show Details
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
ClickscoThis is a data management platform studying reader behavior (Privacy Policy)