Can One Become a Millionaire Through Investing Alone?

Debunking the myth of ‘passive investing’


If you happen to think of it a 90 percent allocation in any particular asset class is a risky one. The realm of passive investment vehicles has surpassed a lot of actively managed funds. This is partly because of the high-fee structure most asset managers charge on top of underdelivering on returns.

Index funds eliminate all the hassle of actively managing one’s portfolio. Most index funds track a particular benchmark such as the S&P500 or other index funds, in which case we call such instruments, funds of funds.

They replicate the indices and other portfolio holdings encompassing those benchmarks and readjust every time those benchmarks readjust themselves.

But the state won’t bail you out, nor will it help you in becoming a millionaire!

$10,000.00 invested at 20 with standard 10% annual growth = $452,592.55 by the time you’re 60.

$10,000.00 invested at 40 with standard 10% annual growth = $67,274.99 by the time you’re 60.

But even if a loss of purchasing power isn’t a primary concern central banks will keep on printing more and more paper currency, simply because it technically helps the IRS and the big banks to stay afloat. The cost to print a “$10” bill is roughly “$0.03” or 3 cents. This leaves $9.97 on the table of central banks which is accounted for as profits within the IRS’ book of accounts. This profit is known as ‘seigniorage’.

Read. Learn. Invest. Stay consistent. But do not simply believe you next door neighbour the next time he says, he’s going to “buy and hold Tesla shares forever”!




Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store