Imagine that you’ve been given $100,000 to invest in the stock market. You have a choice: either put this money into a savings account that pays 3.5% interest per year or invest it in stocks and bonds. If your bank account balance is higher than $100,000 at the end of the year, then you win! If it’s lower than $100,000 at the end of the year then you lose.
You’re given $100,000.
You’re given $100,000. This is the initial amount of money you have to invest in stocks, as well as your total net worth after every trade. If your net worth goes down, that’s okay–the game will automatically deduct the difference from your account and let you continue playing.
The default setting for this game is 100k, but if it doesn’t seem like enough or too much money for you based on your experience with investing or other games like this one (like Monopoly), feel free to change it up!
You can play the stock market with this money, or put it in a bank account that pays you 3.5% interest per year.
The stock market is risky. In fact, it’s a zero-sum game: for every winner there must be an equal number of losers. If you play the stock market and win, someone else loses; if you lose then someone else wins (and maybe both!).
The best way to save for retirement is through your employer’s 401(k) plan or another type of retirement account like an IRA or Roth IRA because these accounts allow you to grow your money without paying taxes until withdrawal–and even then only on earnings from the investments themselves. This means that if you invest wisely over time, when it comes time for withdrawal those investments will have grown substantially in value due to compound interest; this allows retirees who use these plans effectively enough to live off their capital instead of having their income reduced by taxes when they withdraw from them later on down the line–making them far less vulnerable during periods where market volatility might reduce their overall wealth compared with younger people who don’t have as much time left before needing access
If your bank account balance is higher than $100,000 at the end of the year, you win.
If your bank account balance is higher than $100,000 at the end of the year, you win.
If it’s lower, you lose.
You can withdraw from your bank account any time during the year and use those funds as capital for investment in stocks or other assets (though be aware that if this happens too often, it may look suspicious).
If your bank account balance is lower than $100,000 at the end of the year, you lose.
If your bank account balance is lower than $100,000 at the end of the year, you lose. You have to pay taxes on interest earned and capital gains from investments sold during that time period.
You may withdraw from your bank account any time during the year.
You may withdraw from your bank account any time during the year.
You can withdraw all your money at any time, or you can withdraw less than all your money at any time.
A stock market portfolio tends to perform better over time than an interest-bearing account
The stock market can be a risky place, but it’s also a great way to build wealth over time. If you’re willing to take on some risk in exchange for greater returns, then investing in the stock market is right for you.
The other thing I want to emphasize is that investing in stocks is not only about making money–it’s also about diversifying your portfolio and creating income streams. For example: if your goal is to save $1 million by age 65 (or whatever), how much would it cost if all of that money was put into an interest-bearing account? You’d probably end up paying thousands of dollars per year in fees! But if instead we invested this same amount into an index fund that tracks the S&P 500 Index (which tracks 500 large US companies), we would avoid those high fees while still earning good returns over time thanks even during periods when markets go down significantly like 2008-2009 when many people lost their jobs due to layoffs caused by recessionary conditions brought about by Wall Street greediness and other factors affecting our economy at large.”
If you want to try your hand at investing, there are plenty of tools out there that can help you. You can also ask friends or family members who have experience with stocks and mutual funds. The best thing about this game is that it’s free! So give it a shot–you might just learn something new about how these markets work in real life too!
