Achieve Financial Wealth before Retirement Age by Investing in Warren Buffett's ETF
Turn up the Millionaire Making Machine with Buffett's ETFs
Warren Buffett, the "Oracle of Omaha," isn't just beating the stock market - he's betting big on ETFs too. And a certain one, backed by the man himself, could make you a millionaire before retirement.
In his prime at 92, Buffett is the world's most successful investor, famous for his knack in picking winning stocks. Since taking charge of Berkshire Hathaway in 1965, he's achieved returns that outshine the rest of the market. But he doesn't stop at stocks. Buffett dabbles in another asset class: Exchange-Traded Funds (ETFs).
Back in 2013, Buffett advised investing most of his family's leftover cash in a low-cost S&P 500 index fund. Guess what? His Berkshire Hathaway invested in two such index ETFs - the SPDR S&P 500 ETF Trust and the Vanguard S&P 500 ETF. But there are many other S&P 500 ETFs claiming to track the index as closely as possible.
Yo, here's how to cash in that Buffett ETF:
As The Motley Fool calculated, Buffett's ETFs are a terrific investment with low costs and —according to Buffett himself in a 2018 CNBC interview—favorable prices. If you nail it, you could become a millionaire through an S&P 500 ETF.
But remember, choosing the right broker matters. Fees make or break your goal. To find the best platform with an optimal price-performance ratio, check out this awesome link.
Now, the S&P 500 has its ups and downs. In 2022, it took a 20% dip. But historically, the S&P 500 has averaged a 10% annual return. Guess how much dough you'll rake in if you start investing $300 a month in an S&P 500 ETF today? With an average annual return of 10%, you'd be a millionaire in 35 years (neglecting fees and other costs). Invest $500 a month? That'd get you there in 30 years. And here's the kicker: turning into a millionaire doesn't require more effort.
Jeff Bezos, the dude who started Amazon, even cautions against big purchases and favors these three sweet assets.
Brokerage Brawl:
- Charles Schwab: $0 equity trade fees, no account minimum, and a NerdWallet rating of 4.8/5.
- Public: $0 fees, a promotion to bag up to $10,000 when transferring your portfolio, no account minimum, and a NerdWallet rating of 4.6/5.
- J.P. Morgan Self-Directed Investing: $0 trade fees, a promotion to score up to $700 when opening an account, no minimum account requirement, and a NerdWallet rating of 4.5/5.
S&P 500 ETF Showdown:
| ETF | Expense Ratio | Performance (Recent) ||-------------|--------------|---------------------|| SPDR S&P 500 ETF Trust (SPY) | 0.09% | 10.82% to 18.44% || Vanguard S&P 500 ETF (VOO) | 0.03% | 12.37% to 18.55% || iShares Core S&P 500 ETF (IVV) | 0.03% | 18.56% |
- Performance: VOO and IVV outshine SPY, owing to their lower expense ratios.
- Expense Ratio: VOO and IVV have a lower expense ratio of 0.03%, saving more moolah in the long term.
The Finale:
- Liquidity: SPY is liquid as hell, making it great for frequent trading.
- Fees: Calculate the overall cost, considering both brokerage fees and the ETF's expense ratio. VOO and IVV have cheaper expense ratios, translating to savings in the long run.
- Trading Frequency: If you plan on trading regularly, liquidity and low brokerage fees rule the roost.
By considering these factors, you can craft your ultimate investment strategy in Warren Buffett's S&P 500 ETFs. So, what are you waiting for? Time to turn up that milli-maker!
Buffett, the influential investor, recommends low-cost S&P 500 index Fund ETFs like the SPDR S&P 500 ETF Trust and Vanguard S&P 500 ETF, which Berkshire Hathaway holds, for investors aiming to become millionaires. Their lower expense ratios, as he pointed out in a 2018 CNBC interview, can contribute to favorable returns. However, it's crucial to choose the right broker with reasonable fees to optimize your returns and achieve your goal. Consult this helpful link for recommended brokerages. By investing consistently, even $300 a month, one can potentially become a millionaire in 35 years with an average 10% annual return. Make your move in Warren Buffett's S&P 500 ETFs and set your financial success in motion.
