Eddie Arana, Rick Thibodeau, & Chris Bakunas San Diego, Ca. March 2012

Eddie Arana, Rick Thibodeau, & Chris Bakunas San Diego, Ca. March 2012
Eddie Arana, Rick Thibodeau, & Chris Bakunas at Luche Libre Taco Shop in San Diego, March 2012

Saturday, January 12, 2013

How To Earn 1 Million Dollars By Investing $84.00 A Month


Here's an idea for earning a million dollars that requires a little bit of discipline, much patience, and 6 fully cooperating family members (or 6 very close friends).

But not a lot of investment dollars. If you eliminate going out for dinner and drinks just once a month, you pretty much have this in the bag.

Once you have assembled 6 able participants, draw up a contract that states as simply as possible that the 6 of you agree to participate in an investment club and do so with the intention of splitting the proceeds after a specified period of time. 

Then, every month have everybody contribute $84.00 to an account set up at an investment firm. It doesn't matter which one, though I do suggest strongly that fees for managing the fund be as minimal as possible.

That's it. That's all it takes. If you are able to maintain the fund for 30 years and you earn the historical average return of 9.4%, you will have $1,011,656.94.

By historical average, I mean the average return on an investment in a stock since 1900. 123 years is a fairly good extrapolation.

Let's say you open this account when the average age for the group of 6 is twenty. At the average age of 50, the 6 will have a collective worth of just over 1 million dollars.

That is when it will get to be fun. With a million dollars as seed money, your group can start buying commercial real estate.  Within another 10 years, if nobody gets stupid, the chances are good that every member of the investment circle will share in assets worth well over 6 million dollars.

Of course, if you are 20 now, and have an extra $504.00 a month to invest, you can just do this yourself for the next 30 years and avoid all the difficulties that come with being tied to a partnership.

If you are in a stable, committed, long-term relationship that is not going to ever be in danger of going south, and both of you work, this will be easy peasy.

You're welcome. 

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