Part 3 - How To Invest (Investing is for everyone)

Welcome to the final installment of our Navigating Investing series! We hope you’ve enjoyed the journey so far. If this is your first time here, do yourself a favor and check out [Part 1] and [Part 2]—otherwise, you’re basically starting a movie at the climax, and that’s just chaos.

How You Should Invest (Spoiler: Slowly and Steadily)

Let’s get straight to it. The secret to investing isn’t some complex algorithm or a magical stock-picking ability—it’s consistency and patience. Boring? Maybe. Effective? Absolutely.

Millionaires in the UK

According to a UK government study (Level of Wealth - Social Mobility Commission State of the Nation), the majority of UK millionaires are over 50. Shocking? Not really. But what might surprise you is that their wealth is largely made up of… wait for it… pensions.

That’s right. Plain, old, boring-as-watching-paint-dry pensions have created a significant number of wealthy individuals. Why? Because they require consistency over a long period of time.

I once shared a taxi with a retired driver in Belfast who was just waiting for his pension to kick in. He casually mentioned he was expecting £750,000. This man never earned more than £65,000 a year. How did he do it? Simple. He consistently put aside a portion of his salary every month for 35 years.

Property: The Second Source of Wealth

The second major wealth source in the UK is property, which operates on a similar principle. You take on debt to acquire an asset, diligently pay it off for 35 years, and by the end of it, you (hopefully) own something that has appreciated in value.

See the pattern? In both cases, the secret sauce is:

Say it with me: Consistency. Over. Time.

Property: The Second Source of Wealth

According to a UK government study (Level of Wealth - Social Mobility Commission State of the Nation) ,  Level of wealth - Social Mobility Commission State of the Nation - GOV.UK 

The Power of Time in Investing

Data from J.P. Morgan Asset Management (January 1, 2003, to December 30, 2022) tells us that if you had invested $10,000 in the market and just left it alone, it would have grown to approximately $64,844, representing an average annual return of 9.8%.

However, if you had tried to time the market—buying low, selling high (because you’re so much smarter than the market, right?)—and missed the 10 best-performing days in those 20 years, your returns would have been $29,708 instead. Less than half.

Miss 20 days? Your investment would have only grown to $17,826.

Lesson: The best investors don’t try to outsmart the market—they just stay in it.

Other studies have been conducted showing the same message, The study below shows a direct correlation between how  long an investment in the S&P is held and the probability of that investment being profitable. 

Part 1 of our essays, we discussed how Richard Reves and Groner became wealthy, while Mr. Fuscone did not. They leveraged the advantage of time and patience in investing. There's a popular saying: "When you have good habits, time is on your side," and this most certainly applies to investing.

The Importance of Consistency

If time is the match, consistency is the lighter fluid. Let’s revisit our earlier example:

• Someone invests $10,000 and leaves it alone for 10 years. Result? $64,844.

• But what if they also contributed $1,000 every month for those 10 years? Their final investment pot would be a whopping $218,027.85.

This is the power of compounding. Not only does your initial investment grow, but every additional contribution also compounds over time.

Want a real-world example? Look at Warren Buffett. 99% of his wealth came after his 60th birthday. That’s right. The Oracle of Omaha didn’t become a legend overnight—he just played the long game better than anyone else.

Key Takeaways

1. The wealthiest people in the UK are over 50 (and mostly over 60).

2. The majority of their wealth comes from pensions and property.

3. The secret investing formula? Time + Consistency.

4. $10,000 left in the stock market for 10 years (S&P 500 index, 2003–2022) would grow to $64,844.

5. If you missed just the 10 best days in the market, your returns would be cut in half.

6. Adding $1,000 per month to your investment over 10 years? Your balance would skyrocket to $218,027.

   
   

Final Lesson? Investing isn’t about being the smartest person in the room. It’s about having the patience to play the long game and the discipline to be consistent. Boring? Maybe. But do you know what’s not boring? Financial freedom.