Getting Started

The Monday Morning Millionaire Program will show you how to outperform more than 90% of professionally actively managed funds, guaranteed.  At the same time, over an investing lifetime, you can save a year’s income by avoiding adviser fees. Investors can do that by buying and holding a US market index-tracking exchange traded fund (ETF).  For a detailed step by step description, join the Monday Morning Millionaire Program.

Step 1. Open a brokerage account.

There are many stock brokers who would be glad for your business. Adam Smith’s “unseen hand” operates among them; their services and fees are similar. Choosing one at random would hardly make a difference in the long run.

American investors can select from the link below.
https://www.nerdwallet.com/blog/investing/best-online-brokers-for-stock-trading/

Canadian investors can do so from the link below.
https://www.theglobeandmail.com/globe-investor/online-broker-rankings/2014-online-broker-rankings/article21783584/

UK and EU investors can select from the link below.
https://www.investopedia.com/broker/all/

Indian investors can select from the link below.
https://www.compareonlinebroker.com

Australian investors can select from the link below.
https://www.onlinebrokersaustralia.com.au/ and https://www.investopedia.com/broker/all/

New Zealand investors can select from the link below.
https://brokernotes.co/new-zealand/

Step 2. Save and invest.

Starting early in life, deposit 10% of your annual income regularly (say monthly) and buy board lots (100 shares) of a very low-cost S&P 500 index exchange traded fund (ETF).  If you start saving later in life, you will need to save a larger percentage. Donald Trump would be richer today had he taken his inheritance, invested it this way and sat in a rocking chair.

There are thousands of ETFs. The key wording here is to buy an ETF which represents the US economy such as a broadly-based index fund. Review Chapter 4 in Monday Morning Millionaire Ed.2.

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 approximation of the U.S. economy, the strongest economy in history.

Keep buying board lots regularly. Over a working lifetime, this approach will produce a fund large enough to maintain you in comfortable retirement. Furthermore, you will be dollar cost averaging, the only guaranteed way to beat the market. Follow

https://www.investopedia.com/terms/d/dollarcostaveraging.asp

This core portfolio will allow you to outperform over 90% of professionally managed funds, guaranteed, in addition to saving you a year’s income in fees.

Divide your ETF holdings and cash savings in a ratio that is in line your risk tolerance.

In my core portfolio, I was 80/20 in VOO/US money market for years. Recently, I switched to a 50/50 ratio being concerned about the high market levels. Some of my multimillionaire friends are 100% in stocks, others are 100% in cash. Each individual is unique. Each market/cash ratio needs to be individualized.

Step 3.

In retirement, withdraw 1% quarterly from your core portfolio or 2% semiannually or 4% annually and live happily ever after and your portfolio will likely grow. You will never run out of money but you will have to accept a smaller income during the guaranteed occasional market drops.

 

Dr. Milan Somborac

The Monday Morning Millionaire Program supports do-it-yourself (DIY) investors which I have been for over 50 years. About my team and me