Nothing at all.., in a matter of speaking. That is, can ordinary people like you and I, set aside a small amount of money each month, forget about it, and wake up millionaires 15 years later? Thousands of people are spending countless hours day-trading every year with thousands of dollars at stake but we are told 99% never made it, so would we have a chance at all?
Actually, we do and stress-free too, thanks to the power compounding interests. To understand how it works and see the visualization ( because people like charts and numbers ), head over to Nerd Wallet at this link here – investment-calculator
Let’s play a fantasy scenario. Suppose you have $100 to invest. On top of that, you also make a commitment to pay yourself $250 each month that you will use towards your monthly investment contribution. The next key piece you need is an investment portfolio that can generate for you at least 40% ( keep in mind, the average S&P index only gives about 10% return annually ). But by some sheer luck you got it, because ahem, you follow me on M1 and use the portfolio I created – Millionaire’s ETF Group, which has a high possibility of giving you that 40% return. You enter in the $250/monthly, 40% annual, and 15 years to grow and now click on the Calculate button on the Nerd Wallet page.
Looks like the calculator says you can earn $2.8 million by the end of that 15 years! Let’s stretch the fantasy a little further, suppose your portfolio gives you a 70% return per year instead, now re-calculate, what would that give you? $125 million!
But what do I need to do to get there you say? Nothing. Like nothing, much in a matter of speaking. You just need a little bit of patience – 15 years to be exact, and of course, consistency ($250 every month).
Can I just copy the best Investor, like Warren Buffet?
Sometimes the easiest thing to do is just look at people who are the best at what they do and just copy them. The best of the best, consistently spanning several decades, is undoubted, Mr. Warren Buffet. Many have written about his top investments, so for the most part it is publicly discoverable information. According to Investopedia, Mr. Buffet’s top 5 holdings are Apple(AAPL), Bank of America(BAC), Coca-Cola(KO), American Express(AXP), and Kraft Heinz(KHC).
These are pretty stable diverse holdings that cover all major industries from tech, finance, consumer spending/loans, and food and beverages. The exact weight or balance of these is unknown but inspired by that list, I created my top 7 stocks, which includes 4 of Buffet’s top Berkshire holdings, and 3 of my favorite tech stocks which are driving today’s trends and social changes. You can find these lists and save them to your own portfolio here, Warren Buffet’s Equities. Below is a snapshot of what the predicted returns looks like if you had invested $100 a year ago.
As you can see, this provided a good 1.166% dividend with no expense fee, that’s a plus in my book!
If you are not an M1 user already, you can sign up through my referral link here https://m1.finance/i1OiD4UQ9zk7 . Good luck to you, and happy Investing!
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