How to Invest Your Money, When You're Poor as ****
If we all have a regular full time job, we most likely have a 401K program, that is mediocre to just okay. If this is your case, you're just like my family, poor as ****!
Want to know a great way to get started on becoming a millionaire?
Here is what we did:
We cashed out our 401K and yes, we took a penalty for that. We then proceeded to invest that money, into an Index Fund, which continues to grow from roll-over dividends from the S&P 500 stocks.
You have to start the fund with a minimum amount - Our investment firm of choice, required $3000.00 down to open the fund. We then selected a roll-over of all the dividend payments every thirteen weeks, or four business quarters a year. Without using our own income, the dividends give the fund continued growth!
These dividends tend to be 3.5 to 5 percent of full share values, depending on how risky you want to play this market. We chose a medium to low risk fund, insuring we would come out on top, unless of course, a meteor destroys mankind in the near future.
If you start an Index Fund, with a starting cash of $50,000.00(50K), your quarterly dividend would be a one year total of 1500 to 2250 dollars, with no money out of your own pocket.
Of course, we also toss in any extra money we have, instead of using it for a 401K, which tend to NOT grow very fast or very well.
Once we hit 2 million dollars in the fund, we can stop rolling over the dividends and collect our quarterly checks in direct deposit to checking or by snail mail. Those checks we receive, on our 2 million in stock, will total approximately, $65000.00 a year(65K) - We will never need to touch the fund, just simply live off of the company dividends from our shares!
Well yes, if you live in a one room apartment and eat Ramen noodles, while riding a bicycle to work, you could easily have 2 million dollars invested safely, by ten years time.
For us, we didn't need to be so strict. our goal is to hit one million in ten years and we are getting there, with our other investments included.
Finally, check into this everybody?! It makes a great second investment, along side a 401K.