We have all read about people that made a lot of money on GameStop’s manipulated rise and subsequent fall. The same holds true about the tales of Bitcoin millionaires. Kudos to the lucky folks that threw their chips onto the table at the right time and hit it big.

But keep in mind this is the exception and not the norm. This is speculation and not investing. A few fortunate souls gained their wealth this way and I hope this doesn’t cause people to lose a lot of their hard-earned savings trying to do the same thing. Warren Buffet said it best. “It’s not easy to get rich quick but it’s quite possible to get well-to-do over time”. I would like to take this quote a bit further. If you save enough over time and invest those dollars wisely, it is just about a sure thing that you will be wealthy.  It just takes patience and time.

The formula for most people is quite simple. First, try to save 10% to 20% of your income over time. The earlier you start, the better. Second, avoid bad debt such as credit card balances that you can’t pay off each month. Third, invest your savings in a diversified portfolio that is suitable for your stage in the retirement journey. Fourth, take advantage of your employer sponsored retirement plans and IRA investment opportunities (make sure you have some Roth dollars set aside and always make sure you capture the employer match). Lastly, stick to your plan and avoid reacting to all the investment news (noise) that you hear.

I am not saying that you should never make a speculative investment like bitcoin or Gamestop. Emotionally, some people just want the thrill or have the fear of missing out (FOMO). Just make sure that you are doing it with a small amount that doesn’t interfere with your true retirement investment strategy.

Enjoy the journey!