Achieving millionaire status before retirement through Warren Buffett's ETF strategy guide
Let's Chat About Buffett's ETFs: Your Ticket to Millions Before Retirement
Are you ready to join the billionaire club before hitting retirement age? Consider Warren Buffett's ETFs, the foolproof investment strategy many are swearing by!
At 92, Buffett is still arguably the king of investing, lauded for his magic touch when it comes to stocks. He's been leading the charge at Berkshire Hathaway since 1965, raking in returns no Wall Street dreamer would dare hope for. But did you know the Oracle of Omaha isn't just bullish on stocks? He's a fan of Exchange-Traded Funds (ETFs) too!
In a 2013 letter to shareholders, Buffett gave a sneak peek into his investment preferences. He recommended investing most of one's savings in a low-cost S&P 500 index fund. Better yet, he practices what he preaches: Berkshire Hathaway itself invests in two S&P 500 index ETFs - the SPDR S&P 500 ETF Trust and the Vanguard S&P 500 ETF. Although plenty of other ETFs aim to mirror the index as closely as possible, these two are Buffett's top picks.
Your Path to a Millionaire Status
Curious to know if Buffett's ETFs can turn you into a millionaire? The Motley Fool has the numbers to back it up. Not only does investing in these ETFs offer low costs, but they're currently riding the wave of favorable prices. Buffett himself emphasized in a 2018 CNBC interview that the best times to invest are when things are down and out. If you play your cards right, you might just find yourself in the millionaire's club!
But choosing the right broker is crucial. Fees can make or break your ambitious goal, so it's essential to choose wisely. Click here to find out which broker offers the best bang for your buck.
History shows the S&P 500 has its ups and downs. In the turbulent year of 2022, it ended the year down approximately 20%. Nonetheless, it's worth noting the S&P 500 has historically averaged a 10% annual return. So, if you start investing $300 a month in an S&P 500 ETF today, with an average annual return of 10%, you could become a millionaire in 35 years. Step that up to $500 a month, and you could reach that milestone in 30 years!
Here's the kicker: reaching millionaire status requires no additional effort! Now that's what we call passive income.
By the way, Jeff Bezos recently shared his top three investment recommendations – check them out!
A Quick Comparison
Hoping to make an informed decision? Here's a comparison between the two most popular S&P 500 ETFs, the SPDR S&P 500 ETF Trust (SPY) and the Vanguard S&P 500 ETF (VOO):
- Historically, both SPY and VOO have closely followed the S&P 500's performance. Over the last decade, SPY has yielded an annualized return of about 12.24%, while VOO boasts a slighter better 12.31%[1].
- Both ETFs have performed similarly to or slightly better than the historical average of the S&P 500 itself, thanks to their low fees and efficient tracking of the index. However, the S&P 500's performance can vary significantly from year to year.
So, are you ready to ride the constant financial growth path and join the illustrious millionaire club? Start your journey today with Warren Buffett's ETFs!
[1] Data sources: Yahoo Finance and CNBC for SPY; Yahoo Finance and Business Insider for VOO.
Building a millionaire portfolio could be within reach with Warren Buffett's preferred Exchange-Traded Funds (ETFs). Buffett's top picks include the SPDR S&P 500 ETF Trust (SPY) and the Vanguard S&P 500 ETF (VOO), the latter of which he personally endorses for Berkshire Hathaway. Investing in either of these ETFs may offer attractive returns if you start early and consistently add to your investments, making them viable options for your personal-finance strategy.
