Triple Your Mattress

A friend of mine here in Loja is a successful young business owner. She has great profit margins for her dental products, on par with SaaS!

I recently discovered that she puts all her savings under the proverbial mattress. This makes a lot of sense if she wants to scale up the business in the near future with a down payment on a fancy new machine.

Another friend in the U.S. does well in software engineering at a well-known tech company. Aside from the stock compensation, he also keeps the entirety of his earnings in cash.

His six-figure bank account makes no sense at all to me.

Both people have expressed the desire to passively invest their savings, but they haven’t yet had any experience doing so. They are afraid of losing money in the stock market, and they don’t have anyone around them who talks about this stuff.

In case other folks out there are in a similar situation, this week I felt I had to write something about investing. I highly encourage everyone to go put the money you don’t need within the next couple years somewhere other than a bank.

My first account was opened almost exactly 7 years ago with Vanguard’s minimum deposit. It has remained my primary place to deposit savings, all of which have gone into the S&P 500. Here are the gains and losses to date…all that green is free money!

My rate of return is misleading because of a well-timed lucky deposit during the COVID dip last year. I would conservatively expect around 9% annually.

If you have a decent job and are saving some cash month over month, please go consult a financial advisor who knows more than me. It will be the best investment you’ll ever make.

You can learn more about special accounts like IRAs and 401ks, and later perhaps dip your toes into other bets, but the main thing is to trust Jack Bogle and get some annual growth going.


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