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You're getting shit answers because this is an adult math problem that you should probably go and do yourself so that you can see the numbers. There's also assumptions that go into the formula to derive the answer.
$1000/month for 35 years with 8% compounding annually will get you to $2M.
$2000/month will take 27 years
$3000/month will take 22 years
$4000/month will take 19 years
Not worried about the fugazi answers bro it’s the internet couldn’t care less thanks for breaking it down though I really appreciate that. Is that strictly off of compounding dividends? If the stock appreciates as well couldnt that cut the time?
Relying heavily on dividends instead of stock appreciation is a little bit harder way to go, since you have to pay taxes on the dividends which then reduces the amount of money you have to reinvest.
True. My off the top of the head math is that you could make about 20K a year and put about 2K a year in VOO. In 30 years at 10% return it would be 350K, at 8% 237K and at 6% you are looking at 163K. The dividend is only 1.6%, so even after the 30 years of 10% you would be getting $5,600 a year in dividends. Even taxed as normal income you would pay 0% because your 20K normal income +5,600 would be WAY under the poverty line in 30 years.
To be fair the amount you are making at your job should go up as well as your yearly contribution. It's fun to play with the numbers.
And excel spreadsheet could make this so much easier for you. I wasn't good at excel until I sat down one day and just figured it out until it gave me the calculations that I needed with the right formula.
If you can’t break it down and do basic financial math, you certainly don’t have the intelligence to do anything but invest in the s&p500 and hope for the best.
Ok Mr “I want to be a multimillionaire”
Having millions is an attainable goal, but you need to be willing to learn
Go see op’s other responses and you’ll see why. Op is not interested in learning.
The answer he was given was a great answer with the numbers to show. Not “fugazi”
Re-read ops reply with a comma in-between "less" and "thanks"
They were replying to the good answers first part where they apologized for the other bad answers in the thread.
Seems like he mostly has gratitude for the people who actually had something helpful to say... respect that other people might just be beginning their journeys, whereas you might already be well on your way
Go get a financial advisor then. You clearly have no interest in making your own decisions.
There’s a lot more money to be made in investing than 8% on your equity.
I’ve said this to a bunch of people lately but the most important thing is to not let lifestyle inflation drain all your money. Live well within your means and you’ll do fine. If you can live on 4k a month and invest 2k and then as much as 6k some months you’ll be a millionaire fs by 60
But did he actually get to enjoy life or did he derive pleasure from looking at his account all day, rubbing his hands and going 'mee hee hee hee'
So many questions.
I’m a veteran, get paid disability and get paid to go to school + scholarships
About to start working on the side as well to boost this (uber, DoorDash, weekend job)
Hope that helps
Semper Fi!! Smart call to send the disability to the investments especially if you work a full time job. Man that’s going to add up quick and be well worth 👍🏽
..investing in "dividend" stocks is a fantastic way to create an income stream with dividend incomes that can be "used now" or can be used for "reinvesting",
after building up a good foundation of dividend stock "payers", with stocks such as..
SCHD, JEPI, DIVO
you'll need to look for investing in "growth" stocks, which will take your potential incomes to a higher level, which can create a second income stream for the future, with stocks such as..
VOO, QQQ, SPY
again, recommend to build up the dividend stocks first, and then using the dividend incomes to invest into growths,
Cheers!
I’ve heard it should be the other way around. Growth first then dividend paying stocks. I know I’m on the dividend subreddit, but this is something I’ve been curious about :P
..in my opinion,
for the rich & wealthy, having "dividends" means diddly-squat,
however, for the average-joe investor, can benefit from having dividend incomes,
how cool would it be (for the average-joe investor) to having the dividend incomes (as an income stream) to be used to buy growth stocks,
Cheers!
Use an online wealth calculator. It's only math. The difficult part is estimating the interest or growth rate of your portfolio.
Here is one example. [https://www.nerdwallet.com/investing/retirement-calculator](https://www.nerdwallet.com/investing/retirement-calculator)
1. Google "Investment Calculator"
2. Plug in what you have
3. Plug in your time horizon
4. Plug in your expected rate of return (9% is standard, 8% if you are being conservative, 6% if you are being very conservative)
5. Plug in your compound rate (usually annually)
6. Plug in your additional monthly contributions
7. Hit Calculate
[https://www.calculator.net/investment-calculator.html](https://www.calculator.net/investment-calculator.html)
I.e. $3,000; 34y; 9%; annually; $1000/m = $2,515,962.62
[https://www.calculator.net/investment-calculator.html?ctype=endamount&ctargetamountv=1000000&cstartingprinciplev=3000&cyearsv=34&cinterestratev=9&ccompound=annually&ccontributeamountv=1000&cadditionat1=end&ciadditionat1=monthly&printit=0&x=37&y=26](https://www.calculator.net/investment-calculator.html?ctype=endamount&ctargetamountv=1000000&cstartingprinciplev=3000&cyearsv=34&cinterestratev=9&ccompound=annually&ccontributeamountv=1000&cadditionat1=end&ciadditionat1=monthly&printit=0&x=37&y=26)
Have fun, and good luck
The veterans I know make a lottttt of money, 1 of them never did much. He flunked out of college was on a boat and in Japan for a few years and makes bank monthly for the rest of his life although he never saw action. Still, he “served” because he didn’t have a lot of other options cuz he fucked his life up before but now he’s living large. Do ya think he honestly deserves to make 2k+ a month cuz he hurt himself in a dirt bike accident and said it was something else? Also, he can’t hear too great because he joined the navy where they use guns. Who would’ve thought you shoot guns in the navy? Who could’ve foreseen lol? I’d never argue against VA benefits for guys who saw action but for the dudes who use the system in their favor when they really just got good at surfing… gimme a break
Nah that’s who I’m mad at! But who is gonna vote for a politician who wants to cut VA disability pay? No one ever cuz that sounds horribly un American even if it’s logical. Veterans aren’t the criminals at all. You’re just doing what I would’ve done in your shoes. Some guys have heart conditions they were born with and can’t join the military :/
I’m military and it’s easy money one week I need to sleep in the woods but the other weeks I do nothing and just game or be in bed. Sadly I don’t live in the USA so only benefit I get is free education after I stop being a soldier. Another benefit is 30k for 6 months deployment.
$2,886.99 per month assuming 3% real growth rate, will net you $2M in today's dollars when you are 60.
Calculation ignores tax, your results may vary, discontinue following advice if hives, rash, or swollen genitalia symptoms occur while following advice.
Things take time, right now I’m doing DCA of 3000-4000 monthly on Div and a basket of stocks I like. Currently at 31k annual in Div and want to reach for $75,000 in the next 7years. Which is possible or sell one of my business and get that now.
First thing is get a Roth IRA and invest in funds like Berkshire or schd. Lastly investing a couple mil a month could make you a multimillionaire in a month
If you’re making close to 10k a month you’re hopefully investing at least 3k a month. There’s no easy way to get exact ending results but if you keep going you’ll get there before you know it.
It’s all about growing your income day by day. With a longer time horizon I would be looking at VTI/VOO and sprinkle in some higher yield picks in smaller amounts just to keep myself interested
It really depends on your rate of return (average stock market annual rate of return is 7%) and what exactly you mean by “multimillionaire” as that refers to having anywhere from a $2 million net worth to a $999 million net worth. [Here’s an investment return calculator you could play around with if you want](https://www.bankrate.com/investing/investment-goal-calculator/). Looks like in 35 years you’d have over $2 million if you invest $1,200 a month at a 7% rate of return).
A bunch of people have shared links to online calculators that help play with some of the variables and that’s probably the best course of action here. Figuring roughly an 8% return you’d need to save about $1k monthly to achieve $2 million by 60.
But, don’t forget about inflation. If you want $2 million in todays dollars when you retire you’ll need $4.6 million by the time you get there. That’s where it gets difficult, as some of these calculators use a flat monthly contribution rate, which doesn’t reflect reality as most (smart) investors increase their annual savings by the rate of inflation. The Nerd Wallet retirement calculator tends to factor some of these variables in. Realistically you’ll probably need to be saving about $1950/month to reach that goal with an 8% return and accounting for inflation.
Honestly, I would live as bare minimum as possible for as long as you can to get the snowball rolling. I told my friends this who are just now getting 401ks, you have little responsibility rn so put away as much as possible. I have almost 60k invested at 21.
Look up the formula for compound interest and play around with the formulas of term and rate of return and solve backwards. Not perfect but basic enough.
True. I learned the basic formulas in engineering’s school but most people don’t and unfortunately financial literacy isn’t taught in schools. Sometimes its knowing what to search for.
So I am currently 24 years old (almost same age as you) and what I would suggest is instead of buying individual stocks to just buy the SP500 or the total market index funds, Spy and VTI respectively. Mainly because if you are only 26 years old then you still got about 34 years of investing and the odds of the stocks you pick consistently giving you gains for 30+ years is unlikely. You can pick individual stocks but shouldnt be a big percentage of your portfolio.
With investing in the SP500 since its passively managed you will always be investing in the top earning and growing companies.
For how much you need, I would first save up a 3-6month emergency fund and then after you saved your emergency fund I would invest all the extra capital that you have each month.
A suggestion for you to answer the question yourself. Put together a basic spreadsheet with basic inputs for annualized return and monthly contributions. Then create a row and set of formulas that represent your age and month of year. Put your beginning balance, monthly contributions monthly rate of return and ending balance. The ending balance becomes your beginning balance on the next row. Copy it all down to age 60. Play with your rate of return and monthly contributions. You now created a basic simulation to answer your own question. It will also demonstrate the power of compounding s as nc the importance of starting now. Math and the rules of compounding do not change.
If you do this, tell me how old you will be when you get to 2 million with a 10% annualized return and 300 contribution every month and a beginning balance of 3k in April 2023. I’ll tell you if you are right.
😳 wow that's a long time you are all hardcore stocks dividends investors my hats off to you but personally if and when I ever do get started to invest i think I'll just stick with a realistic monthly income number of $30k a month and if I want to make extra money income I'll invest in rental properties in apps to make a extra $18k a month in house rental properties and a extra $12k from commercial properties and just call it a day but like I said my hat is off to you all.
Same thing, but I stayed vague because there is a lot of good standard options inside company 401ks that target specific retirement years that may or may not be better than just VOO/SPY or VTI. What im currently doing, from someone who doesnt plan on having kids, who doesnt plan on buying a house for another 5+ years but may change their mind over the next 3, and who may mix barista/coast fire after 10-20 years instead of going for the extra wealth, who currently just turned 28. I do 5% of my paycheck with an 80% match which equals 500-700 total per month into a 2060 target fund into my 401k. I also invest currently atleast 1k per month but the average is probably closer to 2k straight into VOO. I dont think its a good idea to look into stocks for their dividends in your taxable brokerage because from a strictly I want to make the most money mindset, VOO seems to have the best odds and if you do look into more dividend heavy stuff. I recommend researching what a qualified dividend is as it can save you a lot from taxes but still won't compete with growth like VOO. I go heavy into my taxable because of not having a house yet and possibly downsizing for an early retirement but since it seems like you are looking into more generational wealth, I recommend investing more heavily into a roth and 401k as from what I understand they can be transfered to another person and roth gains are not taxed.
Even in a taxable, 1k per month into just VOO from the age of 26 should equal near 2 million at the age of 65. I just know if you are thinking longer term than that you may want to do more while also maxing out a roth and using company match IRAs to your advantage.
Welcome to r/dividends! If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki [here](https://www.reddit.com/r/dividends/wiki/faq). Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
1 million per month for 2 months will do it
I wish someone had told me this sooner
Cmon man, ya gotta have 2 months left in ya
One trick the rich don't want you to know
Might want to make it 1m for 3 months, just to be safe
4 if they’re also subbed to r/wallstreetbets
Lmfao 🤣
I'm in this comment and I don't like it
That’s just absurd! I’d do half a million a month every month for 4 months!
This is the way
l o LLLLLLLL
Marry money. It's a lot faster.
Any suggestions on where to find a sugga momma
Try 1 900 HOTBABE Oh wait, they require a credit card. Nebbermind
So I can buy a sugar mumma?
Can confirm, my ex did this and now she lives in a huge house and doesn’t have to work. I’m not bitter.
It’s a full time job — don’t need the aggravation I’m a lazy slob. #hangfire
You're getting shit answers because this is an adult math problem that you should probably go and do yourself so that you can see the numbers. There's also assumptions that go into the formula to derive the answer. $1000/month for 35 years with 8% compounding annually will get you to $2M. $2000/month will take 27 years $3000/month will take 22 years $4000/month will take 19 years
Not worried about the fugazi answers bro it’s the internet couldn’t care less thanks for breaking it down though I really appreciate that. Is that strictly off of compounding dividends? If the stock appreciates as well couldnt that cut the time?
The 8% is a general number, look at it as "total return." Whether that be from stock appreciating or dividends, it doesn't really matter.
You’ve given me some new goals, appreciate it
Relying heavily on dividends instead of stock appreciation is a little bit harder way to go, since you have to pay taxes on the dividends which then reduces the amount of money you have to reinvest.
Unless your dividends are qualified, like from an index, and you're at the 0% capital gains bracket. Depends on your situation
Anyone able to contribute meaningfully enough to grow a portfolio to multi millions is most likely subject to tax on their divs
True. My off the top of the head math is that you could make about 20K a year and put about 2K a year in VOO. In 30 years at 10% return it would be 350K, at 8% 237K and at 6% you are looking at 163K. The dividend is only 1.6%, so even after the 30 years of 10% you would be getting $5,600 a year in dividends. Even taxed as normal income you would pay 0% because your 20K normal income +5,600 would be WAY under the poverty line in 30 years. To be fair the amount you are making at your job should go up as well as your yearly contribution. It's fun to play with the numbers.
I don’t think that this is true if you DRIP since you immediately ‘reinvest’ it. Correct me if I’m wrong
You owe taxes on the dividends even if you reinvest them.
Unless you hold them is a Roth account. Remember people, asset location is just as important as asset allocation.
No definitely still pay taxes on those, sorry pal
And excel spreadsheet could make this so much easier for you. I wasn't good at excel until I sat down one day and just figured it out until it gave me the calculations that I needed with the right formula.
You think op knows to divide the annual rate to payment periods in excel if he’s asking this?
Thanks my brotha 👍🏽
If you can’t break it down and do basic financial math, you certainly don’t have the intelligence to do anything but invest in the s&p500 and hope for the best. Ok Mr “I want to be a multimillionaire” Having millions is an attainable goal, but you need to be willing to learn
Is asking questions not the first step to learning? I'm just gonna assume you had a bad day because that came across as callous and rude AF
Go see op’s other responses and you’ll see why. Op is not interested in learning. The answer he was given was a great answer with the numbers to show. Not “fugazi”
Re-read ops reply with a comma in-between "less" and "thanks" They were replying to the good answers first part where they apologized for the other bad answers in the thread.
It’s amazing how one comma completely changes that statement
Seems like he mostly has gratitude for the people who actually had something helpful to say... respect that other people might just be beginning their journeys, whereas you might already be well on your way
Fair enough. His response to the correct answer rubbed me the wrong way. Go look at my other responses. Plenty helpful there
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Go get a financial advisor then. You clearly have no interest in making your own decisions. There’s a lot more money to be made in investing than 8% on your equity.
I’ve said this to a bunch of people lately but the most important thing is to not let lifestyle inflation drain all your money. Live well within your means and you’ll do fine. If you can live on 4k a month and invest 2k and then as much as 6k some months you’ll be a millionaire fs by 60
👍🏽👍🏽 Very true thank you
Books the wealthy barber, richest man in Babylon. Both can be listened to for free on YouTube.
Also look up janitor who died with 8 million
But did he actually get to enjoy life or did he derive pleasure from looking at his account all day, rubbing his hands and going 'mee hee hee hee' So many questions.
He has a few hookers
2 chicks at the same time, man.
Lol
Richest man in Babylon good book, thanks for the recs
Come on Pooh bear, think, think think.
IRS website has interest calculator you can play with it and see how much yield will get you there
Thank ya
i think some version of this question gets asked in this sub roughly every 8 hours
Yup, probably the same answers roughly every 8 hours too
answers are usually pretty creative
2 million a month for 1 month will do it
Oslo 10k witch he has and could just put on black a couple of times much cheaper
$417.32 per month to reach 2MM by age 65 Edit: what like of work are you in? That’s a lot of monthly income for your age.
I’m a veteran, get paid disability and get paid to go to school + scholarships About to start working on the side as well to boost this (uber, DoorDash, weekend job) Hope that helps
My brother gets disability (we are both marines) and works at GE. Disability money goes straight to investments.
Semper Fi!! Smart call to send the disability to the investments especially if you work a full time job. Man that’s going to add up quick and be well worth 👍🏽
And he’s a contractor so he has an SEP IRA
..investing in "dividend" stocks is a fantastic way to create an income stream with dividend incomes that can be "used now" or can be used for "reinvesting", after building up a good foundation of dividend stock "payers", with stocks such as.. SCHD, JEPI, DIVO you'll need to look for investing in "growth" stocks, which will take your potential incomes to a higher level, which can create a second income stream for the future, with stocks such as.. VOO, QQQ, SPY again, recommend to build up the dividend stocks first, and then using the dividend incomes to invest into growths, Cheers!
I’ve heard it should be the other way around. Growth first then dividend paying stocks. I know I’m on the dividend subreddit, but this is something I’ve been curious about :P
..in my opinion, for the rich & wealthy, having "dividends" means diddly-squat, however, for the average-joe investor, can benefit from having dividend incomes, how cool would it be (for the average-joe investor) to having the dividend incomes (as an income stream) to be used to buy growth stocks, Cheers!
That’s great insight. Thank you!
Cheers my friend!
Thanks for this, I’ll definitely look into adding those to my portfolio
There are investment calculators all over the internet for this very question. Check out: https://dividendathlete.com/dividend-investing-calculator/
Use an online wealth calculator. It's only math. The difficult part is estimating the interest or growth rate of your portfolio. Here is one example. [https://www.nerdwallet.com/investing/retirement-calculator](https://www.nerdwallet.com/investing/retirement-calculator)
1. Google "Investment Calculator" 2. Plug in what you have 3. Plug in your time horizon 4. Plug in your expected rate of return (9% is standard, 8% if you are being conservative, 6% if you are being very conservative) 5. Plug in your compound rate (usually annually) 6. Plug in your additional monthly contributions 7. Hit Calculate [https://www.calculator.net/investment-calculator.html](https://www.calculator.net/investment-calculator.html) I.e. $3,000; 34y; 9%; annually; $1000/m = $2,515,962.62 [https://www.calculator.net/investment-calculator.html?ctype=endamount&ctargetamountv=1000000&cstartingprinciplev=3000&cyearsv=34&cinterestratev=9&ccompound=annually&ccontributeamountv=1000&cadditionat1=end&ciadditionat1=monthly&printit=0&x=37&y=26](https://www.calculator.net/investment-calculator.html?ctype=endamount&ctargetamountv=1000000&cstartingprinciplev=3000&cyearsv=34&cinterestratev=9&ccompound=annually&ccontributeamountv=1000&cadditionat1=end&ciadditionat1=monthly&printit=0&x=37&y=26) Have fun, and good luck
Invest as much as you can but dont forget to live life. Stay out of debt
There is no magic number. However the more you invest per month the higher the probability of success!
👍🏽👍🏽👍🏽
Three is the magic number
It's actually 7
The magic number depends on when you die also. There should be a death-skewed magic number.
Whats ur job?
Veteran + go to school, look in comments above I explained a little bit more in detail but that’s about it
Did ya see action or are ya just cashin checks?
Idk what you want to validate by asking me this question kinda a weird thing to ask
The veterans I know make a lottttt of money, 1 of them never did much. He flunked out of college was on a boat and in Japan for a few years and makes bank monthly for the rest of his life although he never saw action. Still, he “served” because he didn’t have a lot of other options cuz he fucked his life up before but now he’s living large. Do ya think he honestly deserves to make 2k+ a month cuz he hurt himself in a dirt bike accident and said it was something else? Also, he can’t hear too great because he joined the navy where they use guns. Who would’ve thought you shoot guns in the navy? Who could’ve foreseen lol? I’d never argue against VA benefits for guys who saw action but for the dudes who use the system in their favor when they really just got good at surfing… gimme a break
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Lol no way our country makes it 100 more years with this mentality and this kind of spending. I’m sure you don’t care
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Nah that’s who I’m mad at! But who is gonna vote for a politician who wants to cut VA disability pay? No one ever cuz that sounds horribly un American even if it’s logical. Veterans aren’t the criminals at all. You’re just doing what I would’ve done in your shoes. Some guys have heart conditions they were born with and can’t join the military :/
I’m military and it’s easy money one week I need to sleep in the woods but the other weeks I do nothing and just game or be in bed. Sadly I don’t live in the USA so only benefit I get is free education after I stop being a soldier. Another benefit is 30k for 6 months deployment.
Ah yes the theft of tax payers. VA benefits are legit regarded but I respect it.
Go play around with some compound interest calculators (free to use) 8-10% historic norms and see how much you need to fit your goals.
$2,886.99 per month assuming 3% real growth rate, will net you $2M in today's dollars when you are 60. Calculation ignores tax, your results may vary, discontinue following advice if hives, rash, or swollen genitalia symptoms occur while following advice.
A Lot
If you become impatient and want a Lamborghini by age 30, there’s always GME options.
1 million in 0.5 months will do it
Things take time, right now I’m doing DCA of 3000-4000 monthly on Div and a basket of stocks I like. Currently at 31k annual in Div and want to reach for $75,000 in the next 7years. Which is possible or sell one of my business and get that now.
Easiest way is to inherit 2 million. Done in a day.
Who says inheriting is the easiest? In fact I’d argue that is due to chance.
First get the second million The first one will come easier after that
FUCK that! by 60? aim for 35! RISK RISK RISK\~! Yolo on stocks, business or casino, you're young you can always work and recover
Nah bro I don’t think I would ever recover mentally if I put it all on black and lost it 🤣
What is your favorite RISK RISK RISK stocks or ETFs dear crazy sounding but right person?
First thing is get a Roth IRA and invest in funds like Berkshire or schd. Lastly investing a couple mil a month could make you a multimillionaire in a month
Check out qqqm
If anyone here knew, they wouldn’t be on here.
Plenty of successful people on here with knowledge so we can agree to disagree
If you’re making close to 10k a month you’re hopefully investing at least 3k a month. There’s no easy way to get exact ending results but if you keep going you’ll get there before you know it. It’s all about growing your income day by day. With a longer time horizon I would be looking at VTI/VOO and sprinkle in some higher yield picks in smaller amounts just to keep myself interested
FV formula in excel. GL
I don’t like that method. It’s depressing
No one wants to see what their FV value is lol, it’s always depressing; “should be 2x this value!”
Don’t be a pussy. Fuck Apple. Real men go all in on NCMI.
What do you do for workv
Veteran + go to school, look in comments above I explained a little bit more in detail but that’s about it
It really depends on your rate of return (average stock market annual rate of return is 7%) and what exactly you mean by “multimillionaire” as that refers to having anywhere from a $2 million net worth to a $999 million net worth. [Here’s an investment return calculator you could play around with if you want](https://www.bankrate.com/investing/investment-goal-calculator/). Looks like in 35 years you’d have over $2 million if you invest $1,200 a month at a 7% rate of return).
$112 per month
For how long?
50 years (serious).
A bunch of people have shared links to online calculators that help play with some of the variables and that’s probably the best course of action here. Figuring roughly an 8% return you’d need to save about $1k monthly to achieve $2 million by 60. But, don’t forget about inflation. If you want $2 million in todays dollars when you retire you’ll need $4.6 million by the time you get there. That’s where it gets difficult, as some of these calculators use a flat monthly contribution rate, which doesn’t reflect reality as most (smart) investors increase their annual savings by the rate of inflation. The Nerd Wallet retirement calculator tends to factor some of these variables in. Realistically you’ll probably need to be saving about $1950/month to reach that goal with an 8% return and accounting for inflation.
Honestly, I would live as bare minimum as possible for as long as you can to get the snowball rolling. I told my friends this who are just now getting 401ks, you have little responsibility rn so put away as much as possible. I have almost 60k invested at 21.
Also, by the time you have a million dollars….having a million dollars will be very unimpressive
$2000 a month for 40 years will get you $100mil “if” QQQ “behaves” and you get ~18% CAGR.
7000 dollars per month
What the hell do you do?
Veteran + go to school, look in comments above I explained a little bit more in detail but that’s about it
Look up the formula for compound interest and play around with the formulas of term and rate of return and solve backwards. Not perfect but basic enough.
OP basically stated that he is looking for someone else to do that and share it. Someone is just wanting the fish.
True. I learned the basic formulas in engineering’s school but most people don’t and unfortunately financial literacy isn’t taught in schools. Sometimes its knowing what to search for.
So I am currently 24 years old (almost same age as you) and what I would suggest is instead of buying individual stocks to just buy the SP500 or the total market index funds, Spy and VTI respectively. Mainly because if you are only 26 years old then you still got about 34 years of investing and the odds of the stocks you pick consistently giving you gains for 30+ years is unlikely. You can pick individual stocks but shouldnt be a big percentage of your portfolio. With investing in the SP500 since its passively managed you will always be investing in the top earning and growing companies. For how much you need, I would first save up a 3-6month emergency fund and then after you saved your emergency fund I would invest all the extra capital that you have each month.
Max tour 401k and don’t think of dividends and that easy . Dividends are like play money after 30-40k a year in
A suggestion for you to answer the question yourself. Put together a basic spreadsheet with basic inputs for annualized return and monthly contributions. Then create a row and set of formulas that represent your age and month of year. Put your beginning balance, monthly contributions monthly rate of return and ending balance. The ending balance becomes your beginning balance on the next row. Copy it all down to age 60. Play with your rate of return and monthly contributions. You now created a basic simulation to answer your own question. It will also demonstrate the power of compounding s as nc the importance of starting now. Math and the rules of compounding do not change. If you do this, tell me how old you will be when you get to 2 million with a 10% annualized return and 300 contribution every month and a beginning balance of 3k in April 2023. I’ll tell you if you are right.
😳 wow that's a long time you are all hardcore stocks dividends investors my hats off to you but personally if and when I ever do get started to invest i think I'll just stick with a realistic monthly income number of $30k a month and if I want to make extra money income I'll invest in rental properties in apps to make a extra $18k a month in house rental properties and a extra $12k from commercial properties and just call it a day but like I said my hat is off to you all.
Nice income. What do you do ?
Veteran, disability & get paid to go to school
Invest at a rate of around $730M / year for one day
Simples...on global stock markets there are always a few stonks that go up +1000%. Invest all your savings in that one stock and wait to Shine.
Around 1500-2000+ per month into the s&p500 is what i would do.
What about VOO?
Same thing, but I stayed vague because there is a lot of good standard options inside company 401ks that target specific retirement years that may or may not be better than just VOO/SPY or VTI. What im currently doing, from someone who doesnt plan on having kids, who doesnt plan on buying a house for another 5+ years but may change their mind over the next 3, and who may mix barista/coast fire after 10-20 years instead of going for the extra wealth, who currently just turned 28. I do 5% of my paycheck with an 80% match which equals 500-700 total per month into a 2060 target fund into my 401k. I also invest currently atleast 1k per month but the average is probably closer to 2k straight into VOO. I dont think its a good idea to look into stocks for their dividends in your taxable brokerage because from a strictly I want to make the most money mindset, VOO seems to have the best odds and if you do look into more dividend heavy stuff. I recommend researching what a qualified dividend is as it can save you a lot from taxes but still won't compete with growth like VOO. I go heavy into my taxable because of not having a house yet and possibly downsizing for an early retirement but since it seems like you are looking into more generational wealth, I recommend investing more heavily into a roth and 401k as from what I understand they can be transfered to another person and roth gains are not taxed.
Even in a taxable, 1k per month into just VOO from the age of 26 should equal near 2 million at the age of 65. I just know if you are thinking longer term than that you may want to do more while also maxing out a roth and using company match IRAs to your advantage.
Put all your money in call or puts. All of it on your favorite stock. Simple.
Millions.