How I would invest to achieve $2M+ total investment account
Saving the best part of this for last! 😎
If I had to start my investment account from scratch again, here’s how I would do it. Showing you my plan in 60 seconds.
First, I would open a brokerage account. This could be just a regular brokerage account or a combination of a regular brokerage account and a Roth IRA. Because I would be putting in $1000 a month I can’t contribute all of this to a Roth IRA. Roth IRA has a limit of $7500 per year, I would take the excess and deposit that into the regular brokerage account.
Then, I would have two different strategies for this $1000 every month. I would take $500 of it and invest in QQQ which is an exchange trade fund that focuses on technology companies. I believe this will do better than the S&P 500 for the next 30 years because of how the world is changing so much towards technology. And QQQ has more exposure to technology than the S&P 500, I believe QQQ will continue to outperform the S&P 500 as it has done so for the past 10 years.
Now I could be wrong here, but this is what I would do. You can do it in way that you are most comfortable with.
Then I would diversify another $500 among 10 high-quality large companies in different sectors of the economy.
Once all these companies become large enough, then I will consider adding another 10 companies to my portfolio. so, in other words, I’m not going to only invest in these 10 companies for the next 30 years. In the next 30 years, I may have a basket of 40 to 50 companies in addition to my investment in QQQ.
Also, as I start getting closer to my retirement, I will consider selling some of my stocks and starting my exposure in bonds which are more conservative investment vehicles. This is if I want to start using my money as an income, I don’t want to be exposed to too much volatility in the stock market.