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My approach is simple: invest the vast majority of all money after expenses into VOO (S&P 500 index fund). First max out tax advantage accounts like 401k and IR
by baccredited 10y ago
My approach is simple: invest the vast majority of all money after expenses into VOO (S&P 500 index fund). First max out tax advantage accounts like 401k and IRAs, then regular accounts.
I have $1,100,000 in VOO. Trailing inflation adjusted returns are 7% ish. Call it $25,666 for the first 4 months of 2016. I KNOW market returns aren't smooth like this but it is a simple approach that works for me (I'm not selling this stock any time soon so ACTUAL returns thus far in 2016 don't matter to me at all).
The math to get to that number is (($1,100,000 x .07) / 12) * 4 months
- Wonnk13 10y agothis is my near exact strategy as well, except for holding a balance of 1,00,000... damn that's impressive.
- baccredited 10y agoI bought my first stocks in 1993. Stick with it and you can easily beat me!
- invalidname 10y agoSame here. I invested far less on an S&P tracking index and have doubled my investment over the past 5 years...
- kdamken 10y agoThis is awesome - congrats on your success and saving. This is pretty what my financial strategy is. In another comment you said you first bought stocks in 1993 - were those the VOO or did you play around with buying individual ones for a while? Any idea what the average amount you put in each year was? Just trying to get a feel for how long it will take me to hit that kind of number.
- baccredited 10y agoSave 2k a month and you can do it in 21 years. I'm saving more like 5.5K/mo now. This is a great read: http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/ http://www.mrmoneymustache.com/2012/01/13/the-shockingly-sim...
- wallzz 10y ago2K is my salary!, I can't save more than 500euro