If you want to retire when you are in your 40s or even your 30s, you have to get quite aggressive with a large part of your portfolio. But you also don’t want to take unnecessary speculative risks. For example, some “investors” will gamble their entire bankroll on things like meme stocks or cryptocurrency. While a very select few can make it big, the vast majority end up losing a significant amount of money.
That’s why it’s important to balance risk and reward if you want to increase your chances of early retirement. Stock index funds, such as those that track the S&P 500, are a good bet if you want to grow your money without taking undue risk.
While past performance is no guarantee of future results, the S&P 500 has always recovered from even the most severe bear markets and has continued to make new all-time highs. This makes an S&P 500 index fund a good bet if you’re looking for long-term growth.