TURNING YOUR STIMULUS CHECK INTO MILLIONS $$$$!
After reading the above title, you may assume I will name the next significant Cyber currency or “GameStock.” Many people made tens of thousands or more profit betting on one or both. But keep in mind for the unlucky who purchased at the wrong time, some lost their life savings. Investing in GameStock, in my opinion, is gambling, NOT investing. There is nothing wrong with gambling as long as you understand the risk.
I am beginning to believe investing in specific cyber currency is closer to a high-risk investment than gambling. More on that later.
Let’s talk about what to do with your check!
TAKE ADVANTAGE OF THIS GOLDEN OPPORTUNITY – BUILD YOUR EMERGENCY SAVINGS
Twenty-two (22) Million people lost their jobs due to the 2020 pandemic. All required some form of emergency money until their unemployment money kicked in, assuming they even qualified for unemployment. Thirty-two percent of Americans have $0 saved, while 58% have less than $1000.00 saved. How many days will $1,000 last if you lose your job?
READ THE NEED FOR EMERGENCY SAVINGS – MORE IMPORTANT TODAY THAN EVER! – LINK POSTED BELOW UNDER: YOU MIGHT ALSO ENJOY:
By simply depositing your stimulus in a savings account, you are better off than 58% of Americans. This is your opportunity.
PAY DOWN THAT 20% INTEREST CREDIT CARD DEBT!
YOUR MISSION SHOULD YOU ACCEPT IS SIMPLE. {FYI – REFUSAL IS NOT AN OPTION} Pay off all non-value added and high-interest debt AS SOON AS REASONABLY POSSIBLE! At ~30%, a credit card debt can almost double in three years if you are paying interest only. Do NOT fall into this trap.
READ: FREEZE – HANDS UP AND DROP THAT CREDIT CARD! – LINK POSTED BELOW UNDER: YOU MIGHT ALSO ENJOY:
FINALLY – GROWING $1,400.00 INTO > $1 MILLION!
Yes, this is achievable, but you have to take ownership of YOUR HARD-EARNED MONEY and follow these simple points.
- Spend less than you earn
- Save the rest
- Invest your savings
For new investors, I recommend considering Exchanged Traded Funds {ETF} Here are three popular ETFs offered by Vanguard.
VANGUARD S&P 500 ETF- VOO
I have invested in this ETF for several years. The S&P 500 ETF allows you to invest in America’s largest 500 companies, WITHOUT trying to pick one or two winners. The top holdings include Apple; Microsoft, Johnson, and Johnson; Facebook; Google, etc. Another advantage is the low-cost expense ratio of 0.03%, which will cost you $0.42 annually on a $1,400.00 investment.
The S&P 500 Price index returned 15.76% in 2020. The annual average return is closer to nine percent annually.
VANGUARD S&P 500 ETF (V00) ASSUMING NINE PERCENT ANNUAL INTEREST RATE
| Start Amount | $1,400.00 | $1,400.00 | $1,400.00 | $1,400.00 |
| Monthly Savings | $0.00 | $120.00 | $300.00 | $600.00 |
| Number of Years | 30 | 30 | 30 | 30 |
| Annual Interest Rate | 9% | 9% | 9% | 9% |
| Total Principle (Dollars you saved) | $1,400.00 | $44,600.00 | $109,400.00 | $217,400.00 |
| Interest Earned | $19,623.00 | $197,360.00 | $464,565.00 | $909,907.00 |
| Maturity Value | $20,623.00 | $241,960.00 | $573,965.00 | $1,127,307.00 |
Vanguard Growth ETF (VUG)
This ETF includes 258 stocks that have the potential for rapid growth. A few of the best-known companies include Apple, Microsoft, and Amazon. This ETF is risker than the above ETF
because high-growth companies are sometimes more volatile than well-established businesses.
Since the fund’s inception in 2004, VUG has earned an average annual return of 11%.
VANGUARD GROWTH ETF (VUG) ETF ASSUMING 11% ANNUAL INTEREST RATE
| Start Amount | $1,400.00 | $1,400.00 | $1,400.00 | $1,400.00 |
| Monthly Savings | $0.00 | $120.00 | $300.00 | $600.00 |
| Number of Years | 30 | 30 | 30 | 30 |
| Annual Interest Rate | 11% | 11% | 11% | 11% |
| Total Principle (Dollars you saved) | $1,400.00 | $44,600.00 | $109,400.00 | $217,400.00 |
| Interest Earned | $35,391.00 | $332,419.00 | $777,060.00 | $1,518,128.00 |
| Maturity Value | $37,391.00 | $377,019.00 | $886,460.00 | $1,735,528.00 |
Vanguard Information Technology ETF (VGT)
This ETF contains almost 350 stocks from the information technology sector. Like the Vanguard Growth ETF, its two most significant holdings by percentage are Apple and Microsoft. It also contains more-established companies, including Visa, Mastercard, and Intel. An advantage of investing in this fund is that tech stocks are known for experiencing higher returns. But they can be more volatile than stocks in other industries. Also, investing in a fund that includes companies from only one sector can be risky. It is advisable to diversify your portfolio if you choose this ETF.
Since its inception in 2004, it has seen returns of just over 13% per year.
VANGUARD INFORMATION TECHNOLOGY ETF (VGT) ASSUMING 13% ANNUAL INTEREST RATE
| Start Amount | $1,400.00 | $1,400.00 | $1,400.00 | $1,400.00 |
| Monthly Savings | $0.00 | $120.00 | $300.00 | $600.00 |
| Number of Years | 30 | 30 | 30 | 30 |
| Annual Interest Rate | 13% | 13% | 13% | 13% |
| Total Principle (Dollars you saved) | $1,400.00 | $44,600.00 | $109,400.00 | $217,400.00 |
| Interest Earned | $66,328.00 | $553,606.00 | $1,284.522.00 | $2,502,716.00 |
| Maturity Value | $67,728.00 | $598,206.00 | $1,393,922.OO | $2,720,116.00 |
CONCLUSION – TURNING YOUR STIMULUS CHECK INTO MILLIONS $$$$!
Our Federal government wants you to spend the stimulus checks to help rebuild the economy. Our Federal government last balanced a budget in 2001 so that’s not precisely the expert I seek for financial advice.
One last thought, if you are in good shape financially, donate. So many people need a helping hand.
YOU MIGHT ALSO ENJOY:
SHOULD YOU PAY OFF DEBT OR SAVE AND INVEST?
FREEZE – HANDS UP AND DROP THAT CREDIT CARD!
FORGET GAMESTOCK – INVEST IN GOATS!
INVESTING IN STOCKS IS COLOR BLIND – WHAT IS STOPPING YOU?
THE NEED FOR EMERGENCY SAVINGS – MORE IMPORTANT TODAY THAN EVER!
KEEP IT SIMPLE STUPID {KISS} – THE S&P 500 ETF INDEX
COMPOUND INTEREST IS THE EASIEST WAY TO DOUBLE OR TRIPLE YOUR MONEY
WARREN BUFFETT UTILIZED COMPOUND INTEREST TO BECOME THE 3RD RICHEST MAN ON THE PLANET!
SO YOU GOT A HUGE TAX REFUND – NOW WHAT?
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ABOUT ME
I am a proud nerd (as my beautiful wife and daughter have told me) investment and finance blogger with an N.C. State, Chemical Engineering, University Rutgers, MBA and Harvard University, Advanced Management education.
I left a corporate career because I desired to make a difference as a speaker and writer. I was blessed to be coached and mentored by strong women and men in my family and professional life. It is my time to serve and give back.
DISCLAIMER
I started my first business at ~13 years of age (a small but brilliantly created plant nursery). I am a successful investor in stocks, options, real estate, and happy to share my finance and investment lessons learned with you.
However, I am NOT a licensed financial advisor. Please do not construe my suggestions on this blog as recommendations for your situation. Please seek your licensed CPA or fiduciary financial advisors for individual financial advice.
I write this weekly blog to make an impact by reaching an audience and demonstrating the need for financial literacy. I will help you get there.
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