Secret secret to retire from multi-millionaire is very easy. There is no easier way to achieve this than using a consistent dollar cost averaging strategy. If you start investing early and use this investment strategy, the chances of abolishing millions are very good.
Averaging dollar costs is one of the simplest and most effective investment strategies. Instead of trying to timing the market, you simply invest regularly, regardless of where the price is.
By investing a fixed amount each month, or all your pay, you will buy more shares when the price is low, and fewer stocks when the price is high. Over time, this will help smooth your cost base and protect you from major market shaking. This is a disciplined approach that continues to invest through both bull and bear markets.
Some of the best investment tools to use this strategy are exchange sales funds (ETFs). ETFs allow you to obtain instant portfolios of inventory without doing much research. The ETF is also very accessible. You can start with a small amount and feel comfortable. The key is to invest consistently.
The power of compound interest makes dollar costs consistently ETFs. Also, there’s no need to start a lot. If you’re in your mid-20s and spend 40 years before retirement, a simple investment of $500 a month could turn into a nest egg of nearly $5 million before retirement with an average annual average return.
If you’re older, don’t worry. An investment of $1,000 a month with a monthly return of 12% can provide a $3 million portfolio in 30 years. However, the earlier you start, the more $1,000 will change monthly to nearly $10 million over 40 years.
Let’s take a look at five powerfully proven ETFs that will help you retire millions.
Vanguard S&P 500 ETF
With a return of 12.8% over the past 10 years, Vanguard S&P 500 ETF (nysemkt: flight) It is one of the first choices investors should consider when implementing a dollar-cost averaging strategy. ETF replicates performance S&P 500which is widely considered a benchmark for the US stock market.
ETFs are a great blend of large stocks of growth and value, and the fund has around 500 shares, giving investors instant diversity.
Vanguard Growth ETF
Growth stocks have led the market path for most of the 20 years. Vanguard Growth ETF (nysemkt:vug) It’s the perfect way to invest in this dynamic. With a return of 15.3% over the past decade, the ETF is another solid option for investors looking to use the dollar-cost average strategy.
ETF officially tracks CRSP US Large Cap Growth Indexthis is essentially the growth side of the S&P 500. It’s not as diverse as the S&P 500, and although it only has around 165 stocks in its portfolio, it has won the highest large-scale growth stocks through ETFs.
Investco QQQ Trust
Investco QQQ Trust (NASDAQ: QQQ) Over the past decade it has been one of the very simple non-sector-specific ETFs that have no performance. ETF tracks performance NASDAQ-100 The index consists of the 100 largest non-financial stocks trading on the Nasdaq Stock Exchange. As NASDAQ has long been known as the exchange of emerging growth and technology companies, ETFs are heavily weighted on these types of stocks.
ETFs have generated an average annual revenue of 17.7% over the past decade, making it easy for the S&P 500 to return with the same stretch. What’s even more impressive is that he beat more than 87% of the time on a 12-month rolling base.
Schwab US Dividend Equity ETF
Investing in growth and technology stocks is not the only investment style; Schwab US Dividend Equity ETF (nysemkt:schd) It’s a valuable investment alternative. ETF tracks Dow Jones US Dividend 100 Indexit consists of high-yield US stocks with a long track record of consistently paying dividends.
ETFs have generated an average annual return rate of only 10.6% over the past decade, but since its launch in October 2011, it has generated an average annual return rate of 12.2%. This is a solid long-term track record.
ARK Next Generation InternetETF
If you want to swing for a fence, ARK Next Generation InternetETF (nysemkt:arkw) It might be perfect for you. Unlike other ETFs, it is actively managed and does not follow the index. Instead, it focuses on “investment in businesses that benefit from increasing use of shared technologies, infrastructure and services, internet-based products and services, new payment methods, big data, the Internet of Things, and social distribution and media.” In addition to investing in stocks, we currently have investments in ETFs. Bitcoin.
ETF is a strong performer, generating an average annual return of 18.2% over the past decade. However, since ETFs have seen some wild shaking over the past few years, you need a strong stomach, as shown in the table below.
Data Source: ARK Invest.
Therefore, this ETF is only for the most offensive investors.
Geoffrey Seiler holds positions in the Invesco QQQ Trust and the Vanguard S&P 500 ETF. Motley Fool has positions in and recommends Bitcoin, Vanguard Index-Vanguard Growth ETF, and Vanguard S&P 500 ETF. Motley Fools have a disclosure policy.
The Motley Fool is a partner at USA Today, providing financial news, analysis and commentary designed to help people control their financial lives. The content is produced independently of USA Today.
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