On February 21, from Daniel, North Carolina
I have been reading through the MMM website and am curious the best way to get started with the program. Does your website offer a service to sort of teach new investors how to get started with all of this and avoid major mistakes? I am a 31-year-old dentist.
Monday Morning Millionaire Program Answer:
You are actually using an excellent way to get started with the program. You are asking questions. Each of our five experts is a self-made, multimillionaire stock market investor. One is on the Investment Advisory Committee of a $4 billion pension plan.
Focus on habit number 4 of highly effective investors (HEI’s), that is, start an early and disciplined savings program. Such a savings program, would allow you to maintain your living standard into retirement. At your age, if you plan to retire in 30 to 35 years you need to save 10% to 15% of your income. If you start saving in your 30s you would need to save 15% to 25% of your income. In your 40s that works out to 25% to 40% and in your 50s you would need to save 40% or more! HEI’s have a personal asset allocation (see New Year’s Resolution. Yes or No?) with which they are comfortable. Decide on yours and place your savings into an S&P 500 market index exchange traded fund (ETF) and cash in a way that is aligned with your asset allocation decision. The best three exchange traded funds (ETF’s) to track the S&P 500 are the S&P 500 ETF (symbol SPY), Vanguard S&P 500 (symbol VOO) and the iShares S&P 500 (symbol IVV). Each is an excellent, low-cost way to participate in the growth of the U.S. economy, the strongest economy in history.