I have been investing $500 a month in DRIP's since 1998. When will I become a millionaire? I have 65K now.

Answer 1

Thats excellent...great discipline...there are ALOT of people on here that do not have that much saved and always say "you should of done this or that for better return",etc. They fail to realize the hit you took with the dow drop of early 2000's, and you are still in there....I started with drips and mutual funds and fortunately shifted out with profits before the crash and bought gold when no one wanted it....I am looking for another dow crash to pile back into dividend stocks next year sometime....you should have some knowledge of the markets by now with 8 years experience and you should start moving the money around via a scottrade account or another low cost broker to increase your return...they will transfer in your drip accts for free(almost anyway)...I'm not a licensed money mgr however.

as to your question, $65k + $6K per year compounded at 3% could reach $1mil by 2035 estimated

don't let these people f*** with you.

remember: always buy when no one wants something and sell when everyone wants it and talks about it.(sell real estate last year as 'it always goes up' was/is the talk)
good luck

Answer 2

If you have 65k now you are doing ok. What you did not specify is whether it was all invested in one company. I certainly hope not. That would be too risky. You should have a portfolio of at least 10 different companies in different industries. And avoid heavy manufacturing. Also it will help your cause if you choose companies with a record of increasing dividends such as for example BAC.

Now for the question of when you will become a millionare. If you continue at your current rate of investment and assuming 8% annual growth of your investments--hopefully a conservative amount--about 35 years.

Answer 3

I believed you invested in of one the bluechip comapny,because the bluechip company did not return that much in those years
from 1998-2006 that is 8 years
your return not too much, so with 500*12*8=48000
right now you had 65k. So your annualized return
65000/48000==1.3541 that mean 35.41% in through 8 year your annualized return is 35.41/8=4.41 that mean nothing

because you have include inflation factor in that about 3% per year. Your real return is about 1.43%

In those year 1998-2006, the REITS,the small cap index. the mid cap fund,the international fund annualized return about 15-25%/year since 1998

You need to change or learn invest the right way
First pick up the book TRADERS ALMANAC by JEFF Hirsch
Second you need to learn the RULE of 72
rule of 72 saying with the return of 4.43%
so 72/4.43=16.25 years that money is double

with 65 k right now,16.25 more year, your money is 130k, with 32 years, your money is 260k, with 48 years, your money 520k, with 64 years your money is 1,040,000
so totally it will take you 64 years to get you 1mill
Stop waht you are doing, go back learn how to invest the right way
To eaglesonaperch, at the age of 32, my 401k is 73000 and 30000 in taxable account.
what do you have?

Answer 4

If you continue at your stated rate and earn 7% on your stocks you are investing in, you will have $1 Mill in 680 months which is approx. 57 years.

I hope you are investing in multiple DRIPs and not just one stock. Also, you might want to look into Index Funds which are like no-fee mutual funds which you can purchase on any online broker (I use sharebuilder). Good luck.

Answer 5

Asuming your investment returns at least 5% per year you will become a millionaire in less than four decades.

If you want to become a millionaire faster you could invest more or invest in a better investment.

Answer 6

I do not wish to invest in DRIP, because it takes long time to make million because of low return. I would like to invest in a no load mutual fund like Vanguard and put money in 6 funds for diversification; fund#0079 European stock index fund; #0129 Global eq. fund, #0052 Healthcare fund Investors,
0046 International value Fund;#0123 Reit Idx fund;#0051Energy Fund Inv. to make substantial amount of money in 20 years. This is my opinion and to be used just for my investment and not a investment recommendation.

Answer 7

Hi, i know what your question means. i also think stock market is a nice place for investing.

I found some useful tips in stock trading. It includes stock basics, how to protect your profit, find a potential increase share, control and manage stock risk, when to sell/buy stock and so on.

http://www.bernanke.cn/stock-trade/

Best Wishes && Good Luck!

Answer 8

What is DRIP's never heard of it,but interested.

Answer 9

What do you invest in?

Answer 10

next century hard to calculate