Most financial advice tells you to go to get a good job, pinch every penny, and surrender your paychecks to a money manager. Then, after 40 long and grueling years, you can finally retire. Fuck that. Nobody ever turned 65 and jumped on a snowboard or booked a flight to Paris. If you wasted the prime of your life being timid, you’ll keep being timid in old age. This article shows you how to escape the trap and retire early by achieving 10% annual returns on your money.
Sounds crazy, but you can do it. And it’s easier than you might think.
If you want to enjoy life now, while having plenty of passive income to support your lifestyle, this article is for you.
Why Retirement Is A Scam
How many people over 65 do you know who enjoy life? I’d guess the number is very few. Now here’s a follow up question. How many people do you know who retired wealthy? Not a lot, right?
So what’s the point of working 40 years to retire poor and miserable?
You’re better off mastering your own money so that you can start living life today.
By achieving 10% annual returns on your investments, you can enjoy a comfortable lifestyle without having to work 40+ years.
- 10% of $150,000 is $15,000
- 10% of $250,000 is $25,000
- And 10% of $1,000,000 is $100,000
With $15,000 per year, you could life decently in a Thai, Filipino, or Vietnamese beach town. That money would cover your rent, pay for dinner and drinks, and leave enough left over for surfing or other fun activities.
And, with $100,000 per year, you could live in much of the United States or just about any other country on Earth.
How To Earn 10% Annual Returns
While there are many ways to gain 10% on your money, dividends are my personal favorite. Buying a stock that pays you for holding it is a no-brainer. It’s also a technique that’s made many investors, including Warren Buffett, incredibly wealthy.
Of course, not all stocks pay dividends. And not all dividends offer a high enough yield to support your lifestyle.
Companies like Coca-Cola or Apple generate very little cash flow compared to the price you pay for them. Other businesses, however, offer high yields that will easily net you 10% returns within a year or two.
Some examples:
- Altria – Maker of Marlboro cigarettes. Fun fact, this is actually the best preforming stock in history. Current dividend is around 8% per year right now.
- W.P. Carey – International real estate company with properties in Europe, Australia, and North America. The current dividend yield is about 6%.
- GazProm – The world’s largest publicly traded natural gas company. Dividend is about 7%.
Of course, these are just some examples. If you can find 3 – 5 companies paying high dividend yields, and you reinvest your money for a year or two, you can easily achieve 10% annual returns in the long run.
Resources To Help You Achieve 10% Returns
Picking stocks is easy, but you have to do some research. Watching Jim Cramer or following trends will leave you with mediocre returns at best.
If you want to find quality, high-yield stocks, you’ll want to check out the following resources:
- Top Dividend Stocks
- The Sure Dividend FREE Newsletter
- Retirement Investing for Income ONLY (Great book on building passive income)
These tools and some common sense will put you on the right track to early retirement and financial freedom.