Retiring a millionaire is a goal for many investors. Thankfully, there are multiple paths to achieving such a goal.
One tried-and true way (also one of the simplest) is to invest in a reliable index fund. With the S&P 500 averaging an annual return of about 10%, a simple $450-a-month contribution should net the investor just over $1 million in 30 years if those averages hold. It may take a while and require patience, but the odds are good the investor will make enough to retire a millionaire.
However, it’s likely you didn’t click on this article just to be told to buy an index fund. It’s more likely you’re looking for stocks with market-beating potential. The same $450 monthly contribution to an investment vehicle with an annual return just 2 percentage points higher would yield an additional $500,000 over those 30 years. That little bump in returns isn’t easy to achieve, but here are these three stocks that could help you attain it.
Alphabet (GOOG 0.56%) (GOOGL 0.87%) is the fourth-largest company in the world as measured by market cap. It has a long history of outsized growth, but it’s getting so big now that investors might wonder if Alphabet has room to grow and keep outperforming the market going forward. I believe it still does, mostly because the company’s cash flows will drive further growth.
Alphabet’s primary business is advertising (80% of Alphabet’s revenue came from advertising in the second quarter), which has been around for thousands of years (the oldest advertisement was found in Egypt and dates to 3,000 B.C.). It’s unlikely that advertising will go away, and that means Alphabet’s primary revenue stream is unlikely to ever dry up.
But just because advertising is always around doesn’t mean it’s a smooth business. In challenging economic times, advertising budgets get cut because it is an easy part of a business’s budget to pull back spending on. This, in turn, negatively affects businesses like Alphabet. The second quarter was one of those periods, but Alphabet…
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