hey there Tiffany Thomas with wealthy Tiffany dot com and in today's video I'm
going to show you exactly how much you really can make in the stock market as I
showed in my last video you could become a millionaire in eight years by
investing in one stock just at the right time and while none of us can time the
market perfectly we can still benefit from time in at the market and that's
what I want to show you today I'm gonna go over a number of different stocks and
the amount that you could have if you would have invested in those stocks just
ten years ago and then I am going to show you another way that you could
invest your money to still get a really good return on your investment so if you
are ready to dive in hit that like button and we're gonna get started okay
here's how I have set this up I've chosen ten different stocks that we are
going to invest in and the way I've chosen these stocks is by choosing
companies that are really popular that have been on the stock market for a
really long time so they're not any abstract companies that are brand new
and hardly anyone has heard of them these are companies that we probably all
use their products and anyone could invest in these stocks and I've set it
up so we are going to invest $10,000 into each one of these ten stocks and
we're going to be adding $400 each month to each stock so a total of $100,000 at
the beginning of the year plus four thousand dollars each month and that
might sound like a lot of money but I just want to give you an idea on the
return on investment you can get when you invest in the stock market and we're
going to hold these stocks for ten years so I just wanted to show you our total
investment after the period of ten years would be five hundred and eighty
thousand dollars that's how much we're putting in to these investments so for
each stock we are investing a total of fifty eight thousand dollars because we
are starting out with ten thousand dollars for initial investment for each
stock and then we are adding four hundred dollars per month to each stock
so when we look at these totals you're comparing it to our original investment
for each one at fifty eight thousand dollars
all right the first stock is Disney and if you would have invested ten thousand
dollars plus that four hundred each month
starting in April of 2010 ending in April of 2020 and the days on these are
going to be a little bit different on some of them for some reason that
calculator wouldn't allow me to put in my exact day that I wanted but you get
the general idea so the total we would have received would have been one
hundred and twelve thousand three hundred and ninety two dollars and two
cents which you can see at the very bottom of this screenshot which is an
annual return of ten point nine seven percent so not too bad
let's take a look at the next one this one is Dollar Tree
it's the dollar store you can buy items for a dollar at and this one if we would
have invested that ten thousand again and then four hundred for each month we
would have had a total of a hundred and nine thousand five hundred and sixty
seven dollars and forty two sets which is the total is an annual return of ten
point five six percent so not a bad stock the next one is coca-cola maybe
you like Pepsi better than coke but I chose coca-cola so this one we would
have had a total of 96 thousand three hundred and seventy two dollars and
ninety four cents which is a little bit lower than the other two at eight point
four seven percent for an annual return the next stock that I chose is Lowe's
corporation I've been going to Lowe's and Home Depot quite a bit lately to fix
some stuff at my rental properties this one would have given us a total return
of one hundred and fifty one thousand seven hundred and seventy one dollars in
four cents which is higher than the others at fifteen point eight one
percent the next stock is McDonald's one of my nieces and nephews favorite
fast-food restaurants this one would have given us a return of a hundred and
thirty thousand nine hundred and ninety six dollars and eleven cents so this one
is a thirteen point four four percent annual return the next stock is Procter
and Gamble and if you're thinking Tiffani I don't think I've heard of this
one you probably have they make a lot of household products like Head & Shoulders
or secret Charmin Vicks oral-b scope pampers Febreze all sorts of stuff like
so if we would have been invested in that stock we would have a total return
of 109876 seven percent the next one I chose is Bank of America Corporation I
have one of my mortgages through a Bank of America now they would have given us
a return of ninety five thousand three hundred and twelve dollars and fifty
cents which is an eight point three percent annual return the next stock is
Chevron maybe you buy your gas here or maybe you stick to the cheaper gas
station metric but if you would have bought their stock they would have given
us a return of sixty two thousand five hundred and two dollars and thirteen
cents which is an annual return of one point two seven percent so not that
fantastic so you can see the risk of investing in individual stocks but we're
gonna come back to this after I finish showing you the other two stocks the
next one is JPMorgan Chase & Company maybe you have a Chase credit cards that
would be this company they would have given us a return of one hundred and
twenty one thousand two hundred and thirty eight dollars and fifty cents
which is a pretty good return at twelve point one seven percent the last stock I
chose was Walmart you know a lot of people that like to shop at Walmart they
would have given us a return of one hundred and nineteen thousand seven
hundred and twenty-five dollars in 61 cents so almost a twelve percent annual
return its eleven point nine nine percent so the money we would have made
by investing in these ten stocks for the period of ten years would have been five
hundred and twenty nine thousand seven hundred and nine dollars and fourteen
cents and our original investment was five hundred and eighty thousand dollars
so fifty eight thousand per stock over the period of ten years which means we
didn't quite double our money but we came close now what I want to show you
is if we invested that money in an index fund instead of buying these individual
stocks and the fund that I chose was the Vanguard total stock market ETF so this
is a fund that tracks the total stock market so if we would have
invested all of our money into this ETF instead of in individual stocks we would
have a total of 1 million fifty one thousand six hundred and forty eight
dollars and 99 cents so a little bit lower than investing in all of those
individual stocks still a really good return and we wouldn't be worried about
choosing individual stocks so this scenario shows that you could earn more
money if you were to invest in about ten different individual stocks versus one
fund that follows the total stock market but this may not always be the case
there are stocks that you can purchase that would have grown a lot more than
the stocks that I gave in this example or you could have chosen stocks that
wouldn't have grown as much as I showed in this example so it is a risk to
invest in individual stocks I like to do it but I also like to put some of my
money into a fund or index fund that I don't really have to watch whereas I'm
watching my individual stocks and I don't check them every day or anything
like that but I keep my eye on the companies I'm invested in because if
they start to become a different type of company or they don't seem to be keeping
up with what's going on in the market then I need to sell those stocks and put
that money into a different investment but I kind of just wanted to show you
this fun example and show you how much money there is to be made in the stock
market if you do it smartly in comparison I want to show you if you
were to leave your money in a savings account and my savings account I use a
lie a LLY they have an interest rate for their savings at 1.5 percent so that's
what I did my example for because I'm going to assume that you are very smart
and if you were keeping money in a savings account for a long amount of
time that you have it in an online savings account which is going to pay
you a higher interest rate so looking at this example for a 1.5 percent interest
rate we would have a total of six hundred and thirty four thousand three
hundred and fifty dollars at the end of ten years with our same investment and
Mount take a look at that comparison you can have over a million dollars you can
be a million or you could have just over your
original investment so really think about this example when you are just
leaving your money sitting in a savings account instead of putting it into some
type of investment whether that is the stock market like I showed in this
example or into real estate or some other type of investment we really need
to invest our money to help us become financially free or retire we won't be
able to do that unless we are investing our money so it's really important that
you do that so pick the way that works best for you if you like individual
stocks then buy some individual stocks choose some good companies or if you
want to be more hands-off you have no desire to invest in individual stocks
then pick an index fund or an ETF to invest in and continue to invest your
money over time so that you can retire when you want to hopefully this has been
helpful and you can actually see the return that you could receive on your
money if you're willing to take some risk and invest in the stock market and
you can do it your way you don't have to do it someone else's way and invest in
really risky stocks brand new companies you can choose a few individual stocks
that you're interested in investing in and maybe choose a fund that you like as
well so it doesn't have to be super risky but leaving your money in a
savings account is what's risky because you're not even keeping up with
inflation which is about 3 percent per year so you're maybe earning that one
one and a half percent in your savings account and by just choosing to get
started investing you can have a much higher return on your money and you
don't have to keep your eye on it every day and go crazy by watching it go up
and down all the time you can just continue to invest overtime just add to
your investments and be consistent with your investing and then see that return
over time comment below and tell me what your favorite stock is I'm curious to
know and if you found this video helpful please hit that like button and share it
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interested in getting two free stocks since we were just talking about stocks
weevil is doing a promotion if you open a free brokerage account with them and
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watching I'll see you in the next video