15 Investing Questions Answered (2022)

15 Questions about investing, answered short and simple! I have more comprehensive posts about some of these topics as well, I will link them below every subheading if you want to take a deeper dive into some of the topics.

Let’s get started!

1. Can investing make you rich?

The first and probably the most interesting question there is, is that can investing make you rich? The short answer is yes. Investing can make you rich, if your investing horizon is long enough and you manage your risks well.

Being rich can mean different things to everybody. However, the amount of wealth that can be achieved with long enough time and a good investing strategy can make almost anyone rich by their metrics.

A post where I dive deeper into the topic of whether investing can make you rich can be found here.

2. Can investing put you in debt

Next one, can investing put you in debt? Investing can put you in debt if you are reckless with your money. If you borrow money and put it into very risky investments, you could end up in debt.

However, if you only invest your own money that you can afford to lose and don’t need for a decade or so, you should be good. It is important to manage risks when investing, and only invest money you don’t need for quite some time.

Markets have their ups and downs, so if you need the money you invest in six months, they might have lost some value when you need them. The longer your investing horizon is, the better.

A dedicated post about if investing can put you in debt can be found here.

3. Can investing be a hobby

Can investing be a hobby? Yes it can! It can also be a very fun and profitable hobby. There are not so many hobbies out there that have positive return expectations.

With investing, you can have fun while also creating yourself long-term wealth. Let’s take snowboarding, for example. It sure will take a lot of money, but it rarely will pay the money back. Unless you happen to win Olympics or something.

I have a dedicated post about investing as a hobby. You can read it here.

4. Can investing make you a millionaire

Next up: can investing make you a millionaire? Good news! It can, if your investing horizon is long enough and you have a good investing strategy. According to past data, of course, that is not a guarantee of the future. Still, after all, companies are supposed to make a profit for their shareholders.

How long does it take to make a million dollars with investing?

A few examples on how much on monthly deposits with an 8% return it will take to reach that million-dollar mark below:

  • 200 dollars a month for 46 years
  • 500 dollars a month for 35 years
  • 1000 dollars a month for 27 years
  • 2000 dollars a month for 20 years

You can calculate yourself with this calculator: https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator (Not sponsored)

5. Can investing be ethical

Can investing be ethical? Sure, it can. If you look closely enough to find companies that have a good reputation and fill all your criteria for being ethical.

There are also different kinds of funds and ETFs who only invest in ethical companies in their metrics. This is probably an easier way to make investing ethical when someone else does the research about companies.

6. Can investing be a full-time job

Investing can be a full-time job if you are good enough at it and you have enough capital to support yourself with the profits, while also growing your capital.

The 4% rule can be applied here, it basically means that if you withdraw 4% of your investments annually, your money should not run out. If you want to play it safer, withdraw only 3 or 2% annually.

More about the 4% rule in this post, where I talk about different levels of financial freedom.

7. Can investing be a career

close up photo of a person wearing suit jacket
Investing offers a lot of different career options

Can investing be a career? Yes, it can. There are many different career options around investing you can shoot for. A few different careers on investing listed below:

  • Trader
  • Broker
  • Analyst
  • Portfolio manager
  • Financial reporter
  • Personal finance planner / advisor
  • Risk manager
  • Investment banker

These and many more. Career opportunities in financial fields are there like in every other field. One option is to start your own business around the financial field. Topics about business can be found here.

8. Can investing become an addiction

Can investing become an addiction? I think at some level investing can be addictive, like pretty much everything else. Investing as an addiction should not be as harmful as other addictions such as alcohol or video games.

That is because the point of investing is to create wealth and make your portfolio perform as well as possible. Therefore, even if you get addicted to investing at some level, that might have a positive outcome.

Don’t get me wrong, any addiction can also be harmful to you. Investing is one of them. You might end up losing money and your relationships if all your focus goes to the markets. Personally, I have never seen cases where somebody was addicted to investing and it was hurting them.

9. Can investing change your life

Investing definitely can change your life. There are at least 4 different ways investing can change your life in a better direction:

  • Investing can make you rich
  • It can relieve financial stress
  • Investing can be a hobby
  • You can build a career around investing

It can also have negative impacts on your life if you make reckless investments with money you cannot afford to lose. That is why it is important to manage your risks well and only invest money you don’t need for a decade or so.

A more comprehensive post about how investing can change your life can be found here.

10. Can I start investing for my child

You can start investing for your child and you really should. Even small monthly deposits to your child’s investing account can really have a huge impact on your child’s life.

Your child will have a really long time until they retire, if you start an investing account for their retirement when they are born, with really small monthly deposits only until they turn 18 can have a huge impact over the next 65 years, or when they retire.

I have a post about how to make your child retire as a millionaire, you can read it here. If you have children, I highly suggest you read it.

11. Can investing create wealth

Can investing create wealth? Yes, it can, and at least for me, it is the major reason I invest. It is a very passive way to create long-term wealth.

Investing can also keep your assets safe from inflation of fiat currencies. In the long-term, inflation can have a huge impact on the purchasing power of your assets, if you only keep them in your bank account as dollars or euros.

Investing will not only give you protection against inflation, but it will also, according to past data, grow your capital.

12. Can real estate investing make you rich

assorted color wall paint house photo
Can real estate investing make you rich?

Real estate investing is another way to create wealth and become rich among stocks. It is a good way to diversify your investments and it can definitely, when done right, make you rich.

It can help you create wealth at least two different ways:

  • Value of your properties can increase
  • Monthly rent payments from your tenants

13. Can investing in crypto make you rich

Investing in crypto can make you rich, but it has a lot of risks. It is, in my eyes, more risky than stocks. When you own stocks, you own pieces of companies that are supposed to make a profit.

Cryptocurrency values are purely dependent on supply and demand. They don’t have any physical assets backing them up, at least that I know of.

There could still be money to be made in the crypto markets, but it is way riskier than other ways of investing. I would still consider it to be a way to diversify your investments, with a small weight on your portfolio. Not necessary, but possible if you feel like doing so.

14. Can investing in index funds make you rich

Investing in index funds is a really good way to invest, and it can make you rich. According to past data, markets have provided us with 8% returns annually. Index funds are supposed to follow markets so if your investing horizon is long enough, it can make you rich.

Index funds are a good option. However, there are also other kinds of funds. Actively managed funds can become really expensive in the long run. I have a post comparing passive index funds and actively managed funds. You can read it here.

15. Can investing in stocks make you rich

Investing in stocks can make you rich if you pick the right stocks. Even if you decide to start picking stocks yourself, instead of investing into already well-diversified index funds, remember to diversify enough.

Diversifying will lower the risk of an individual company facing a bad season. Most of the times overdiversifying is not the problem, but the lack of it. One option is to buy index funds and individual stocks. If you want one company to have more weight in your portfolio, this is a good way to go.

Final words

15 Investing questions answered short and simple. Hopefully you found answer to the question if you were looking for.

I have more investing-related posts as well; you can read them here.

This is not investing or financial advice. Past returns of the market are not a guarantee of future returns. Always do your research before risking your hard-earned money.