Summary of "My Simple $689 Plan To Hit $1,000,000 (stress-free)"
Summary of Finance-Specific Content from “My Simple $689 Plan To Hit $1,000,000 (stress-free)”
Key Assets & Instruments Mentioned
- S&P 500 Index (primary investment vehicle)
- Individual quality stocks (e.g., Apple, Nvidia, Microsoft, Amazon, Johnson & Johnson, Visa, Procter & Gamble)
- Index funds/ETFs tracking the S&P 500 (e.g., Vanguard’s VOO or similar with low expense ratios ~0.01%)
- Brokerage accounts (examples: Fidelity, Vanguard, Schwab)
- Retirement accounts: Roth IRA highlighted for tax advantages
- Emergency fund (3-6 months of expenses in cash or money market accounts)
Investment Strategy & Methodology
Core Strategy
- Invest $689 monthly (~20% savings rate) consistently into the S&P 500 index fund over 16 years (2009–2024).
- Use dollar-cost averaging: buy more shares when prices are low and fewer when prices are high, smoothing the average purchase price and removing emotional decision-making.
Performance Metrics & Historical Results
- Total invested over 16 years: $132,288
- Portfolio value in 2024: ~$461,000 (248% gain)
- Average annual return: ~14.5% (2009–2024)
- Market positive 14 out of 16 years; notable years:
- 2013: +32%
- 2022: -18%
- Market crashes included:
- 2011 debt ceiling crisis
- 2020 COVID crash
- 2022 inflation bear market
- Example growth milestones:
- Year 1: $8,268 invested → $9,362 portfolio value
- Year 5: $41,340 invested → $65,000 portfolio value
- Year 10: $82,000 invested → $147,000 portfolio value
- Scaling contributions:
- $1,000/month → ~$669,000 portfolio
- $1,500/month → ~$1,000,000 portfolio
- $2,000/month → ~$13,000,000 portfolio (hypothetical, compounding effect)
Portfolio Construction
- 50% in S&P 500 index funds for stability and broad market exposure
- 50% in carefully selected individual stocks based on quality metrics
Stock Selection Criteria
- Gross Margin ≥ 30% (indicates pricing power and competitive moat)
- Return on Capital Employed (ROCE) ≥ 15% (indicates efficient use of capital)
- Stocks meeting these criteria include Microsoft, Apple, Johnson & Johnson, Visa, and Procter & Gamble
- Use free online data sources and AI tools to find these metrics
- Maintain a written journal tracking purchase rationale and conduct quarterly reviews to avoid emotional selling
Risk Management & Mindset
- Prepare mentally and financially for market crashes (expect ~30% drops every 5–7 years)
- Maintain an emergency fund of 3–6 months of expenses to avoid forced selling during downturns
- Ignore daily market noise; avoid checking portfolio daily (delete trading apps to reduce temptation)
- View market crashes as buying opportunities due to discounted prices
- Automation is key: set up automatic monthly investments on payday to treat investing like a bill
Tax Efficiency
- Use Roth IRA accounts where possible for tax-free compounding
- Avoid taxable brokerage accounts for retirement savings to maximize growth
Explicit Recommendations & Cautions
- Start investing now, even with small amounts ($100–$200/month) to build the habit
- Do not wait for the “perfect” market entry point
- Avoid emotional investing (buying high, selling low)
- Automate investments to remove emotion and maintain discipline
- Prepare for and embrace market volatility rather than fear it
- Use low-fee index funds with expense ratios as low as 0.01%
- Maintain a written investment journal for accountability
- Have an emergency fund to avoid panic selling during downturns
- Use tax-advantaged accounts like Roth IRAs for better compounding
- Avoid daily portfolio monitoring and financial media noise
Performance Metrics & Key Numbers
- $689/month = $132,288 invested over 16 years → $461,000 portfolio value (248% gain)
- Average annual S&P 500 return (2009–2024): ~14.5%
- Market drops:
- 18% in 2022
- 34% in 33 days during COVID crash
- Emergency fund: 3–6 months of expenses recommended
- Expense ratio example: Vanguard S&P 500 ETF (VOO) ~0.01%
- Compound growth example: $100/month at 10% for 30 years → $226,000
Step-by-Step Framework to Set Up the Strategy
- Open a low-cost brokerage account (Fidelity, Vanguard, Schwab)
- Choose a low-fee S&P 500 index fund/ETF (e.g., VOO)
- If investing for retirement, use a Roth IRA to maximize tax benefits
- Determine a realistic monthly contribution amount (aim for $689 or more)
- Set up automatic monthly investments scheduled on payday
- Optionally, allocate 50% to index funds and 50% to individual quality stocks meeting gross margin and ROCE criteria
- Maintain an investment journal with rationale and quarterly reviews
- Build and maintain an emergency fund to withstand market downturns
- Avoid checking portfolio daily; focus on long-term growth
- Use market downturns as buying opportunities to accumulate shares at discounts
Disclaimers
- Past performance is not a guarantee of future returns
- No promises on exact returns or outcomes
- Not financial advice; viewers should do their own research
- The presenter does not accept sponsorships or payments from brokers
Presenters & Sources
- Felix Freed: Former investment banker, founder of Gold Academy (20,000+ students), co-founder of tradevision.io
- Winston (co-presenter mentioned briefly)
- Felix’s free training available at: felixfriends.org/getfree
Overall, the video advocates a disciplined, automated dollar-cost averaging approach investing $689/month into the S&P 500 index fund combined optionally with quality individual stocks, emphasizing mindset, risk management, and tax efficiency to build wealth stress-free over time.
Category
Finance
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