Compound Your Wealth with Dividend ETFs: How to Retire Early by Age 50
My journey to building wealth and my goal to retire early before 50 years old, listen to how I am making this a reality. I am utilizing compound growth Vanguard dividend ETFs to continuously make my money work harder for me, even when I am sleeping just like the rich do every day.
My goal is to create income streams that will generate passive income for me and my family, retire early from the rat race of work before 50 years old. I am currently building a dividend portfolio with ETFs like VYM (Vanguard Dividend Appreciation Index) in order to achieve this goal. This article walks you through my personal journey to achieve that goal and start enjoying life.
– Why income streams are important to have in the first place
– How income streams can generate passive income
– Utilizing Vanguard Dividend ETFs like VYM (Vanguard Dividend Appreciation Index) as a vehicle for investing and generating an income stream.
My goal is to create income streams that will turn into money streams and generate money while I sleep, eat, enjoy fun times with my family, and unwind during a mini vacation.
There are dividend ETFs that pay every quarter of the year and there are even stocks that pay monthly and weekly. Vanguards VYM ETF is the simple investment that you just have to continue to buy more stocks and reinvest your dividends. This ETF is very safe and makes it easier to sleep at night.
As my number of VYM shares continues to increase, so will the snowball effect of the amount of money I get every quarter.
Patience is the key factor to successful investing in dividends and creating an investment plan as simple as purchasing 5-10 shares a week is a start to financial freedom.
Dividend investments allow you to take advantage of compound interest, tax-free wealth building, or taxed at a lower rate than other income streams.
So far, every quarter I am seeing smaller dividend payments that are in the double digits, but my goal is to see how fast I can get that up to triple digits. When my shares are able to start buying their own shares is when my money will truly start working for me.
Patience is the key factor to successful investing in dividends and creating an investment plan as simple as purchasing five to ten shares a week is a start to financial freedom. Dividend investments allow you to take advantage of compound interest, tax-free wealth building, or taxed at a lower rate.
Over the past 5 years VYM, investing $10,000 without adding a cent more would have returned 66% interest by reinvesting dividends. That would be approximately $16,644, over $6500 by doing nothing.
Again, the beauty about compound growth is that the longer you wait and when you buy shares consistently, the wealth you build is much quicker. Dividend investing is the hardest the first few years until your start contributing to buying additional shares.
Look for my updates throughout the months to follow along on my journey to becoming wealthier and richer in life. I want to work less and have more time for my family.
