Imagine the amount of wealth that John D. Rockefeller was basking in during his retirement years in sunny Florida.
Now picture yourself living in that kind of luxury…
While Rockefeller’s billions may have come from his oil business, he used a special trick in order to build the retirement of his dreams.
Would you like to know how to copy that financial trick so you can retire like Rockefeller?
Rockefeller built his highly profitable portfolio on the principle of compounding.
Compounding can be simplified into the definition: generating earnings from previous earnings.
Meaning the key to retiring like Rockefeller lies in the concept of making your money make more money for you.
Why should you have to work for your money when you can make your portfolio do all the hard work?
You shouldn’t.
So, how can you use the power of compounding to set yourself up for the rest of your life?
You first need to find a retirement account with a high dividend.
This can be achieved by investing in Exchange Traded Funds (ETF) like Arrow Shares Dow Jones Global Yield (GYLD), which pays a 18.57% dividend; Yield Shares High Income ETF (YYY), which pays a 7.96% dividend; or Global X Super Dividend ETF (SDIV), which pays a 6.72% dividend.
You’d then take any dividends paid to you and reinvest them into the ETF.
For example, let’s say you save $5,000 a year in your retirement account.
Using this money, you could invest in an ETF like GYLD, which would get you around 278 shares per year (based on current price of $18 per share).
Now, obviously this stock is going to move up in price, but let’s say for simplicity sake that it maintains an average of $18.
With a dividend rate of 18.57%, this ETF could go down and you’d still be making money.
By following these guidelines and reinvesting your dividends, here’s what your next 20 years of savings would look like:
After the 20th year dividend payout, your total would give you a retirement budget of $907,946.
That’s almost $1 million in retirement funds.
I’d be really surprised if you couldn’t retire comfortably on that.
And you obviously don’t need to wait the full 20 years. If you know that $100,000 is a good start for you, you can retire after you’ve been using this for 10 years.
Your dividends will keep coming in, and you should keep reinvesting them for maximum profit.
Using Rockefeller’s simple financial trick of compounding will provide you with the retirement of your dreams.
