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Globe and Mail
an hour ago
- Business
- Globe and Mail
This Nasdaq ETF Could Turn $500 Monthly Into $1 Million
The $1 million mark is a significant financial milestone for many people. There's something about seven figures that feels like you have achieved a real level of financial security. For most people, the most realistic way to reach $1 million is through investing. That's not groundbreaking news, but what is often underappreciated is just how simple it can be. It doesn't take hitting big on a generational winner like Nvidia or Amazon; it can be done with exchange-traded funds (ETFs) that take a lot of the guesswork out of investing. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » One ETF in particular, the Invesco QQQ ETF (NASDAQ: QQQ), has delivered historical returns that could carry you to the $1 million mark. And it's worth considering for your portfolio. An ETF that leans heavily on big tech stocks The Invesco QQQ ETF mirrors the Nasdaq-100, an index that tracks the 100 largest non-financial companies listed on the Nasdaq stock exchange. The ETF is weighted by market cap, so megacap tech stocks make up a large portion of the fund. Below are its top 10 holdings (as of June 13): Microsoft: 8.79% Nvidia: 8.62% Apple:7.34% Amazon: 5.59% Broadcom: 4.80% Meta Platforms:3.72% Netflix:3.17% Tesla: 2.94% Costco Wholesale: 2.69% Alphabet (Class A): 2.54% Having half of a 100-stock ETF in 10 stocks doesn't scream diversification, but it does give you exposure to some of the stock market's heavy hitters. Each of the 10 stocks has considerably outperformed the S&P 500 over the past decade and operates in industries with plenty of growth opportunities. NVDA data by YCharts; ANN = compound annual growth over previous 10 years. This ETF has a history of impressive returns Since it hit the stock market in March 1999, this ETF has averaged around 10% total returns (close to the S&P 500 long-term average). Over the past decade, its returns have been much greater. QQQ data by YCharts. Averaging 17% to 18% annually is impressive, no doubt, but it shouldn't be the long-term expectation. Would it be nice? Absolutely. However, it's much better to plan for more-modest returns and be pleasantly surprised if it does work out that way. For the sake of illustration, let's assume the ETF's returns are in the middle, around 14% annually. Here's how much $500 monthly investments would grow to in different numbers of years. Years Investment Value 15 $258,700 20 $533,400 25 $1.05 million 30 $2.05 million 35 $3.96 million Table by author. Investment values are rounded down to the nearest hundred and take into account the ETF's 0.20% expense ratio. The biggest factor is time because that's what allows compound earnings to work their true magic. Even if we use the more conservative 10% annual returns, you could hit the $1 million mark a little after 30 years. In all fairness, these are assumptions, and we should never take past performance as a guarantee of future results. However, it does show this ETF's long-term potential with consistent investments over time. Use this ETF as a supplemental part of your portfolio Although this ETF is full of world-class companies and has all the tools to outperform the market, I wouldn't make it a large portion of my portfolio because of how concentrated it is. The tech sector is over 57% of the ETF, so your returns will depend a lot on the sector's performance, especially the " Magnificent Seven" companies. Granted, the tech sector has been the highest-performing over the past decade or so, but there's a risk that comes with relying heavily on one sector. It's especially important to be aware of how concentrated your stock portfolio is if you're investing in the S&P 500, which has become tech-heavy over the past few years with the explosion of megacap tech stocks. Even if you can't afford to dedicate $500 monthly solely to this ETF, a relatively small amount can go a long way over time. Should you invest $1,000 in Invesco QQQ Trust right now? Before you buy stock in Invesco QQQ Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Invesco QQQ Trust wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor 's total average return is995% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Stefon Walters has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Costco Wholesale, Meta Platforms, Microsoft, Netflix, Nvidia, and Tesla. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Yahoo
19 hours ago
- Business
- Yahoo
Tony Robbins: 7 Tips for Building Financial Security in Tough Times
Money is an all-too-common source of worry and stress. We fear losing our jobs, stock market crashes or simply not being able to pay all of our bills next month. While we can't control the greater economy or even our job security, there are steps we can take to protect our finances as much as possible and ride out any waves that come our way. Learn More: Check Out: In a blog post, entrepreneur and author Tony Robbins outlined a few effective tips to build financial security, regardless of what's happening in the wider economic environment. Here's how to create financial certainty in an uncertain world. Don't let your financial fears get the best of you. 'When the world seems uncertain, most people freeze or panic,' Robbins wrote. 'But the most successful people in history — those who built fortunes and legacies — did so by acting when others were paralyzed by fear. Remember, where focus goes, energy flows. If you focus on what you can control, you'll find the power to act, even when the sky seems to be falling.' Some things you can do to gain control are to build an emergency fund for short-term needs and to plan ahead for long-term goals through retirement savings accounts and life insurance. Explore More: Robbins says that if you want to 'shift your results,' you first have to 'shift your state.' 'Don't let the news or social media dictate your emotions,' he wrote. 'Take care of your body, move, breathe deeply, and prime your mind every morning for strength and gratitude. Certainty starts from within.' Paying attention to negative speculation can make you feel more fearful than is necessary. 'In times of uncertainty, rumors and negativity spread faster than the truth,' Robbins wrote. 'Get the real facts about your finances, your job and your opportunities. Make a list of your assets, your skills and your connections. Knowledge is power, and clarity is the antidote to fear.' One of the best ways to gain control of your money and work toward financial freedom is to create a budget that includes room for saving, investing and paying down debt. 'Now is the time to get lean and strategic,' Robbins wrote. 'Review your expenses and cut what isn't serving you. But don't just focus on scarcity — look for places to invest in your growth. The greatest fortunes are made in times of crisis, not comfort. Invest in your skills, your relationships and your health. These are assets that no market crash can take away.' Having diverse investments will help shield you from swings in the market. 'Volatile markets do not have to determine your stress level, and with the right strategy, they do not have to disrupt your future plans, either,' Robbins wrote. 'Take the time to understand proven tactics — like asset allocation, risk management and the buy-and-hold strategy. Study what the world's top investors are doing. Diversification and discipline are your best friends in uncertain times.' In addition to investment diversification, also consider diversifying your income streams. This way, if one income source runs dry, you'll have others to fall back on. When you're feeling anxious, your instinct may be to withdraw. But instead, focus on growing your network. That way, if you do lose your job, you already have connections that can help you find your next opportunity. 'Don't isolate yourself,' Robbins wrote. 'Reach out to mentors, peers and people who inspire you. Proximity is power. Surround yourself with those who are solution-focused and resilient. Share ideas, collaborate and support each other. Together, you'll find strength and new opportunities.' Even if you're facing financial hardships right now, remember that this is a phase — and you can move past it. 'Every economic winter is followed by spring,' Robbins wrote. 'The people who thrive are those who refuse to let fear dictate their actions. They adapt, they innovate and they keep moving forward. Decide now that you will be one of those people.'More From GOBankingRates 4 Things You Should Do When Your Salary Hits $100K If a Financial Advisor Doesn't Ask These 5 Questions in Your Consult, Keep Shopping 5 Steps to Take if You Want To Create Generational Wealth Robert Kiyosaki: 5 Money Habits of People Who Retire Early This article originally appeared on Tony Robbins: 7 Tips for Building Financial Security in Tough Times
Yahoo
2 days ago
- Business
- Yahoo
5 Most Impactful Financial Changes To Make Today, According to Jaspreet Singh
A Pew Research Center survey found that only 37% of Americans believed their finances would be in better shape within one year. Many reported struggling to cover their medical care or housing costs and needing to get loans from loved ones. Explore Next: Check Out: If you're unhappy with your situation, you need to figure out exactly what to focus on so you can become more financially secure. This likely involves going beyond eliminating small, frequent expenses, like your daily premium coffee. A YouTube video from money expert Jaspreet Singh explained five changes that will have the biggest impact on your finances — start making these moves today. Singh said it's common to unknowingly pay too much in fees for your retirement account. Various funds have an expense ratio that you pay for annually, depending on your earnings and investments. While the fee might seem small, it could cost you hundreds of thousands or even millions. Singh gave examples of the VFIAX and GFACX funds with respective expense ratios of 0.04% and 1.36% and average returns of 12.5% and 12.6%. If you spent 30 years investing $1,000 per month in those funds, you'd reach $3.56 million with VFIAX versus $2.7 million with GFACX. That difference shows it's crucial to know what you're paying and change investments if needed. Trending Now: 'If you are paying higher fees, make sure the returns are justifying the fees,' Singh said. 'Because what we've seen through history is that, in general, high-fee accounts do not outperform the lower cost, lower fee, passively managed accounts when you look at it over the long run.' A report from the U.S. Bureau of Labor Statistics identified housing, transportation, food and health care as some of the largest household expenses in 2023. While you might think of cutting back on the less important stuff, Singh recommended targeting the major expenses if you're financially strained. For example, he said you could look for a cheaper place or vehicle and invest the savings. Other options could include splitting costs with a roommate and using alternative transportation, like carpooling or taking the bus. According to Singh, you might save up to $1,000 each month if you're strategic with your cuts. After you've built up wealth, you'll find it more realistic to spend money on fancier things without stress. Increasing your income goes hand in hand with cutting expenses to build wealth more efficiently. Singh explained that even getting your employer to offer a $5,000 raise has a major long-term impact when you look at the compound interest potential. He gave an example of investing your $5,000 raise every year for 30 years and getting a 10% average return, which he said would get you to about $1 million. If you change the timeline to 40 years, you'd reach about $2.4 million. 'This is the power of asking for that raise sooner rather than later and then taking that additional money and putting it to work,' Singh added. Getting yourself into a better financial position requires rethinking how you use your paycheck so that your money goes to work and makes you richer. Singh laid out three steps to take. First, he said you need to track your spending so you know where your pay is going every month. A budgeting app or a simple spreadsheet with your income and expenses will do the job. Singh recommended using categories for expenses, which you can identify from financial statements and noting the money you invested, gave or saved. After that, consider using the 75/15/10 plan to prevent overspending and ensure you're working toward your money goals. Singh explained that this limits your spending to 75% of your earnings and requires investing a minimum of 15% and saving at least 10%. With your plan in place, you can focus on investing as much as possible to build your wealth. That means making smart decisions with any extra money you get as well. 'One common trait that you will find amongst all successful people is that they were willing to take a risk on themselves,' Singh said. For you, this might look like finally getting started with investing, making your business dream a reality or getting a degree that helps you land a higher-paying job you love. It could also be as simple as getting a book that educates you on investing or offers career tips. Singh explained that this kind of risk-taking isn't easy but is worth it, so you should trust yourself and not let failure discourage you. He gave the example of how his parents wanted him to become a doctor from a young age, yet he found different opportunities as an entrepreneur and content creator. More From GOBankingRates I'm a Retired Boomer: 6 Bills I Canceled This Year That Were a Waste of Money This article originally appeared on 5 Most Impactful Financial Changes To Make Today, According to Jaspreet Singh Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Malay Mail
2 days ago
- Business
- Malay Mail
Cashing out too soon: Lump sum withdrawals risky as Malaysians face longer lifespans, says EPF
KUALA LUMPUR, June 18 — The practice of lump sum retirement withdrawals may jeopardise long-term financial security and increase the risk of retirees outliving their savings, said Employees Provident Fund (EPF) chief executive officer Ahmad Zulqarnain Onn. He said that only a small proportion of EPF members currently meet the basic savings threshold, while over 58 per cent of working-age Malaysians are not contributing to any formal retirement scheme. 'If Malaysia is serious about preparing for a 100-year life, we must fundamentally rethink how we work, save, engage and care, across all stages of life,' he said. Ahmad Zulqarnain added that the EPF is exploring enhanced accumulation strategies, including structured monthly withdrawal options, to help members manage longevity risks and ensure the sustainability of their retirement savings. 'We are intensifying efforts to promote retirement literacy, particularly among youth, informal workers and vulnerable groups, to build a culture of long-term saving and informed financial decision-making,' he said during his closing remarks at the International Social Wellbeing Conference 2025, themed 'Living to a Hundred: Are We Prepared?' held here today. As Malaysians live and work longer, he said the country must eventually align the full EPF withdrawal age with the national minimum retirement age to ensure a more coherent and secure transition into later life. 'The EPF remains committed to turning this challenge into an opportunity by delivering retirement solutions that are inclusive, sustainable and future-ready,' he said. 'Our shared responsibility is to build systems that enable Malaysians to age with dignity and social connection,' he added. — Bernama
New York Times
2 days ago
- Entertainment
- New York Times
The Dallas Cowboys Cheerleaders Get a 400 Percent Pay Raise
In what amounts to the biggest reveal of the second season of the Netflix docuseries 'America's Sweethearts,' the Dallas Cowboys Cheerleaders will receive a pay raise of roughly 400 percent for the 2025 season. It is a huge increase in a profession known for its low wages, and one that a former cheerleader for the team, Jada McLean, described in an interview with The New York Times as 'a drastic change' that could give the cheerleaders more financial security. The pay bump is announced in Episode 7 of the show's second season, which began streaming on Wednesday. It caps a yearslong effort for higher pay that drew a great deal of attention in 2018 when the former cheerleader Erica Wilkins sued the team for unfair pay. She claimed in her lawsuit that she received roughly $7 per hour with no overtime pay and a flat rate of $200 per game, which, in total, ended up being less than the annual pay for the team's mascot, Rowdy. Her case was settled out of court in 2019 and, since then, hourly wages for the squad remained low. Missing from the announcement of the raise in the show were any specifics of what the cheerleaders were making previously, or how much they would be paid under their new deal. But in a rare instance of a Cowboys cheerleader, past or present, discussing her compensation, Ms. McLean told The Times that in 2024, her fifth year with the squad, she had made $15 an hour and $500 for each appearance, and that compensation varies based on experience. With the increased wages, she said veteran cheerleaders could now be making more than $75 an hour. The new contract also changes the structure around pay for game day and other appearances, though Ms. McLean said it still does not provide health insurance. In an emailed statement, the franchise would not confirm the new wages or if the new rates apply to rookies on the team as well. Want all of The Times? Subscribe.
