[ad_1]
Do you want to create an annual income of $ 100,000 in dividends? You can put your fortune on the right track to get a good result.
Here's how you can do it:
Step one: win and save
Money does not magically appear, unfortunately. To grow your wealth, you must strive to earn money and spend less than you earn.
Everyone's budget is different. Everyone does a different job. There is no "right" answer on how much you should earn or save. Whether you make $ 50,000 or $ 150,000, that's what you can save.
Obviously, you have to spend money to cover the basics, but then you need to earn more and avoid lifestyle inflation for each of your additional dollars.
Next: Invest
Now that you have savings, you have to make it work in the long run.
I think there are two main ways of investing that would be best for your fortune and / or your life.
The first avenue is to go too little do not waste your time looking for stocks, invest in diversified stocks, do not worry about them and ignore market volatility. This should not only give perfectly good compound returns, but more importantly give you more time to earn money or for your personal life. In my opinion, some good options include Magellan Global Trust (ASX: MGG), Vanguard MSCI Index International Equity ETF (ASX: VGS) and iShares S & P 500 ETF (ASX: IVV).
The other avenue is to try to maximize your return on investment as much as possible. I certainly do not want to say that you can find shares as speculative as possible. For me, this means finding quality ASX stocks that are trading at attractive prices for a long-term return on investment. I think some good examples today include Challenger Ltd (ASX: CGF), Costa Group Holdings Ltd (ASX: CGC), REA Group Limited (ASX: REA) and WAM Microcap Limited (ASX: WMI).
Finally: reinvest until the goal is reached
Capitalization works best when you reinvest dividends in the purchase of more shares. You do not even have to use dividend reinvestment plans, you can take money and choose the best opportunity you can see.
With a dividend yield of approximately 6%, it would require a portfolio of $ 1.66 million. This seems to be a lot of money. he is a lot of money. But starting with $ 0 and investing $ 1,000 a month, or 10% a year, it would only take 27 years to make your $ 100,000 annual income a reality.
It could be quite possible to invest more or to make up more than 10% a year, which allows you to reach your goal more quickly.
If you want to earn returns of over 10% a year, stocks like Challenger can be exactly what your portfolio needs.
5 companies we like better than Challenger
When Scott Phillips, Ace Stock's coach, has a buy recommendation, history shows he can pay to listen.
Scott recently revealed what he believes to be the five best ASX stock for investors to buy now … and Challenger was not part of it! That's right, he thinks these 5 stocks represent even better purchases.
See all 5 stocks
Tristan Harrison, a contributor to Motley Fool, owns shares in Challenger Limited, COSTA GRP FPO, MAGLOBTRST UNITS and WAM MICRO FPO. Motley Fool Australia owns shares and has recommended Challenger Limited and COSTA GRP FPO. Motley Fool Australia has recommended the REA Group Limited ETF and Vanguard MSCI Index International Shares. We fools may not all have the same opinion, but we all agree that taking into account a wide range of ideas makes us better investors. Motley Fool has a disclosure policy. This article contains only general investment tips (under AFSL 400691). Authorized by Scott Phillips.
Source link
