€10.000/month in Vanguard S&P 500 UCITS ETF (VUSA / IE00B3XXRP09)

I explain why I invest €10.000 every month in Vanguard S&P 500 UCITS ETF (VUSA / IE00B3XXRP09).

► New update (July 23, 2021) https://www.youtube.com/watch?v=HzcCicYp-dk

► July 2021 (Financial Independence Journey) https://creatoregg.com/financial-independence-7-2021
► June 2021 (Financial Independence Journey) https://creatoregg.com/financial-independence-6-2021

► I make $567 profit/day https://www.youtube.com/watch?v=09JQsHXaRCQ
► My net worth [$205,192] https://www.youtube.com/watch?v=j_Xy9kuB68Q

There are two ways to be an intelligent investor. The active investor and the passive investor.

Which one are you?

So for me, as you already saw in the title of this video, I lean more towards the second option-the passive investor.

I chose the Vanguard S&P 500 ETF to invest in. I now invest €10.000 every single month into this ETF. Until today, I have €60.000 invested. Around the 22 of every month, I buy another €10.000 worth of Vanguard S&P 500 ETF stocks to add to my portfolio. I didn’t started with €10.000 every single month, though. I started with €200 per month but the moment my business performed better and better I was able to save and invest more.

According to historical records, the average annual return since its inception in 1926 through 2018 is approximately 10%–11%. The average annual return since adopting 500 stocks into the index in 1957 through 2018 is roughly 8%. - https://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp

And yes, I do understand that historical numbers are no guarantee for future results.

Anyway, let's say this index will perform similar results. 8% per year. This means that if my starting amount is 60.000 euros like it is now and I would add 10.000 euros to it every single month for the next 10 years, I'm close to 2 million euros in total. https://www.calculator.net/investment-calculator.html

If it performs worse than the historical date, like 5%, I will have 1.6 million euros in total. I aim for 10 years because I would like to become financially free as soon as possible. Having around 2 million euros invested means I can call myself financially free. Let's say I can invest 10.000 euros for the next decade, and after that, I stop contributing to it every month. If you would let 1.6 million euros sit there for the next 20 years, it will be worth 4.2 million euros if there's a 5% return year over year. Suppose the market performs better, and there's an 8% return on average. In that case, the total number after 20 years will be close to 7.5 million euros.

Circling back to the two types of investors where I started this video with, I would instead go for the passive investor and put my money into this index fund than feeling the pressure to beat the market, so to speak. You must understand that buying individual stocks will take far more time than just buying into an index fund you believe in. The overall goal of buying individual stocks is that you believe you can generate higher returns than buying into an index fund. Suppose you won't reach your goal of generating higher returns than the overall market. What is the point of spending so much time analyzing all those individual companies?

It's a very personal choice no one can make for you.

If you landed on this video to help you decide whether you should buy Vanguard S&P 500 ETF stocks, then I'm here to disappoint you.

This so-called dollar-cost-averaging investment strategy I use, or in other words, investing a set dollar amount in the same investment at fixed intervals, only works if you truly believe in it yourself. If someone else tells you should do it, you might invest a couple of months, and then your motivation or interest disappears. You may even choose to sell your stocks when the price of it goes down. Or you might stop buying when the price goes down.

If you think similar to me and think this investment strategy might work for you too, you should start researching yourself. After some proper research, you may convince yourself to follow a similar path or go with a different route. The thing is, you need to find your way and stick to it because you believe in it.

In conclusion, if you haven't found your investment strategy, yet. I would suggest start by reading the book The Intelligent Investor. This book basically discusses every single aspect of investing. And I'm not saying this is the investor bible and that you should follow every little thing you read in it, but it gives you a perfect overview of all the options. From there, you will have questions and research more, and eventually, find your investment path.

Subscribe here: https://www.youtube.com/channel/UCYW5L8zq-2RYEBN6uqeUFQg/?sub_confirmation=1

#VanguardSP500 #ETF

Видео €10.000/month in Vanguard S&P 500 UCITS ETF (VUSA / IE00B3XXRP09) канала Robbin K