Investment Basics That You Should Know
Hi everyone,
I don’t have a business breakdown today.
What I have is more important.
More important than anything you have read before (yes).
It is the millionaire equation, and yes, you can become a millionaire through safe investments.
And by the end of this email, I will share a couple of options with you about how you can invest too.
Let’s begin.
Only rule to remember: If something promises crazy returns, it is either a scam or a risk not worth taking.
With that in mind, let’s explore our options.
The first method: Invest in S&P 500
I like this method because it somewhat “guarantees” the results. Historically speaking (for more than the last 100 years), people who have invested in S&P have done well.
S&P 500 is nothing but a weighted basket of the 500 biggest companies in the USA. If you think the USA will continue to do well, S&P is a safe bet.
However, if you need to sell your stock in the next 5 years, S&P will not work.
Here’s how I will recommend investing in S&P to become a millionaire:
- Invest $1686/month
- Average annual return will be 8%.
- Time required: 20 years
You will become a millionaire (yes, you will actually have $1000000) in 20 years if you follow the above numbers.
Now, $1686 is not a small amount. So here’s a more realistic plan, but it will require more time.
- Invest $664/month
- Average annual return will be 8%.
- Time required: 30 years
I know 20 or 30 years seems like a lot. But time flies, and you don’t always need a “million USD” to live a good life.
Let’s imagine you want $500,000 USD. Here’s how to do it:
- Invest $843 USD/month for 20 years.
- Or invest $337 USD/month for 30 years.
Now, I will give you a basic plan too. Assuming all of us can save $100/month, this is how it will look in 10-year windows.
If you invest $100/month from today in S&P 500, you will have:
- $18,000 in 10 years
- $60,000 in 20 years
- $150,000 in 30 years
Yes, compound interest is magic.
If you take one thing from this email, it is that you should immediately start investing in S&P 500, and you should do that every month.
2nd Method: Investing in Crypto
Unlike S&P 500, this is risky. This is very, very risky, and you might lose everything. So be careful.
I invest 80% of my money in S&P, 10% in crypto, and 10% in other businesses.
I think you should do the same.
If you invest $100 in Bitcoin every month from now on, this is what it might look like in the future:
- $75k in 10 years
- $1.5 million in 20 years
- $29 million in 30 years
This is somewhat unrealistic—because I had to predict it based on small history. BTC doesn’t have a history like S&P 500, and many still consider crypto as a speculative asset.
But yes, I think you have a higher chance of becoming a millionaire with crypto than S&P 500. But the risks are also way, way higher.
What if you invest $100/month in ETH? Here’s how it will look like:
- $53k in 10 years
- $685k in 20 years
- $8m in 30 years
Again, the above examples consider that BTC and ETH will perform similarly as they did in the last 10 years.
Here’s what I think you should do if you are under 40 years old:
Every month, invest $100 in crypto and $100 in S&P 500.
If you can do more, add more to S&P 500; don’t add more to crypto.
How to Invest
If you are from the EU or North America, you can use any platform you want. I like Coinbase.com. Trade Republic is also nice. A lot of people use Revolution or Robinhood.
If you are from any country, you have a couple of options:
- Ask a family member or friend who lives abroad to buy it for you.
- Register a business in Dubai/EU and buy assets using the business account.
If none of the above work for you, you can ask me, and I will buy and hold it for you. I will have to cut 30% of profit for Irish tax purposes, but yeah, I can do that for you if you want.
Whatever you do, stay invested; don’t keep a lot of cash.
Always remember, cash = trash (Grant Cardone says it, not me).
See You Next Article.
Thanks a Lot