Stock investing: how I’m using £500 of my monthly salary right now to make £100k

first_img Jonathan Smith | Friday, 8th January, 2021 jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Stock investing: how I’m using £500 of my monthly salary right now to make £100k £100,000 is a lot of money, enough to really change my life. It would pay off a large chunk of my mortgage, or allow me to finally upgrade my old car (with money left over for new golf clubs). In pursuit of this endeavour, I think a lot of people don’t realise that it’s an achievable amount of money to make via sensible stock investing. In other articles, I’ve laid out my strategy to make a million, which should take a couple of decades. For £100,000, this process can of course be faster with a regular monthly investment.Why stock investing?There are numerous different ways to use your monthly salary for money-making ideas. These include buying physical gold and holding it, to selling online, or investing in Bitcoin and other crypto assets. All of these ideas have merits, but I’d suggest playing to your strengths. For example, I don’t invest in cyrptocurrencies because I really don’t understand them enough and don’t think they offer intrinsic value. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…So stock investing is a way I feel confident in using some of my salary to try and make money. Aside from my personal preference, stock investing historically has enabled people to generate good profits from just holding a FTSE 100 average portfolio. If you’d just bought a FTSE 100 tracker fund five years ago, you would have made 15% from the share price gains plus around 5% a year in dividend payouts. This is without any active decision-making on stock picking.A final reason why I prefer stock investing is that you can be very clear on your figures. If you just focus on dividend payouts, you know the dividend yield as soon as you buy a stock. So investing this way you can easily work out how much money you’ll be making each year.Running the numbers with £500Moving on from the concept of investing in stocks, how far does my monthly £500 go? Let’s assume the above performance from the past five years continues for the next 10 years (which I must point out might not be the case). This would give me a return of 30% from the share price, plus 50% from dividends. So an average of 8% per year. As I’m going to be active in my investing, I’ll be targeting high-growth stocks. Therefore, I’m going to add on an extra 3% per year return from my ‘active’ investment strategy. This gives me an average return of 11% per year, which over 10 years could grow my pot to over £100,000.You may think my added performance assumption is a little optimistic. I disagree. For example, I recently wrote a piece on Anglo-American and how the share price has performed very well. Over the same five-year period, the share price was up over 800%. I’m not saying that if I’d been active in stock investing I’d have put 100% into it, but it illustrates the point well. Research and quick thinking can easily add to a performance in excess of what a tracking product could offer. Image source: Getty Images Our 6 ‘Best Buys Now’ Shares I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. 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In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!last_img read more

Market Perspective: It’s Not the Knowns, it’s the Unknowns that Worry You

first_img Share Save  Print This Post The Best Markets For Residential Property Investors 2 days ago Related Articles The Best Markets For Residential Property Investors 2 days ago January 5, 2016 1,023 Views Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Home / Daily Dose / Market Perspective: It’s Not the Knowns, it’s the Unknowns that Worry You Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Market Studies, News Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Financial Crisis U.S. Economy 2016-01-05 Brian Honea Previous: How Does the SFR Market Look Going into 2016? Next: DS News Webcast: Wednesday 1/6/2016center_img Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago The Federal Reserve finally commenced monetary tightening in December, raising the federal funds target rate for the first time in nine years. The nation’s central bank believes the economy is back on track following the slowest economic recovery post-World War II—but are we taking all the proper precautions to prevent another financial crisis similar to the one the nation experienced in 2007-08?The government and policymakers put in some safeguards—but it’s the unknown that we need to worry about, according to Senior Economic Analyst Mark Hamrick.“I would make an analogy about financial crises and boxing,” Hamrick said. “The punch that a boxer is most worried about is the one that he doesn’t see coming. Essentially, the same thing has to do with the risk in the global economy and financial markets.”The 2007-08 crisis was unique because it was the participation of many different types of stakeholders that allowed it to happen, Hamrick said, ranging from politicians to were not vigilant about promoting regulation to politicians who promoted the idea that everyone who wants to own a home should be able to own one, as well as financial markets that encouraged the securitization of mortgages.“I think it’s appropriate for regulators, central bankers, elected officials, people in industry, consumers, and investors, to have an idea about what the appropriate risks are and obviously for certain regulators in the United States to be taking all measures possible to try to guard against the next financial crisis,” Hamrick said. “But history tells us that what we tend to see is that regulators try to stop the repeat of the most recent financial crisis instead of have an ability to essentially be omniscient to stop all potential financial crises. These could be things that we just right now could not possibly anticipate.”Possible causes for concern that cannot be fully anticipated range from concern over China’s economy, a large scale war or natural disaster, an accident of some kind, something technical in the financial markets, or even a compromise of financial markets by hackers, Hamrick said, but could include virtually anything. The Financial Stability Oversight Council (FSOC), which was created out of the Dodd-Frank Wall Street Reform Act of 2010, has addressed some of the causes of the crisis, “but the concern is that what we don’t know is what’s going to hurt us,” Hamrick said. “We know that we’ve tackled some of the problems that occurred last time around, but it’s the problems we haven’t quite defined yet that are probably the most worrisome.” Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: Financial Crisis U.S. Economy About Author: Brian Honea Data Provider Black Knight to Acquire Top of Mind 2 days ago Market Perspective: It’s Not the Knowns, it’s the Unknowns that Worry You Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribelast_img read more