+44 7393 450837

advice@adamfayed.com

Follow on

How have I dealt with adversity, hard times and failure?

We are going from strength to strength at adamfayed.com, having a record year in 2020, after huge increases (records) in 2018 and 2019.

Yet not every year in business, or life, has been easy. In the video below I speak about how I dealt with such times, and some tips I learnt:

To subscribe and see more click here. Recent videos have discussed matters such as:

  • Why favour fortunes the brave in business and investing – especially when others aren’t being brave.
  • Will the UK bring in a wealth tax in 2021 or later?
  • What’s my review of Interactive Brokers for expats?
  • What trends could we see in 2021?
  • The high street is a declining space it seems. Which industries will be growth areas next year and indeed in the next decade?
  • Argentina’s new wealth and expat tax
  • The Dow Jones at 30,000
  • Is it really true that the Japanese stock market, the Nikkei, has performed incredibly badly over time?
  • Is TransferWise a good option for you and your business?
  • What would I do if I was 17 again?
  • Should UK expats invest privately or through National Insurance?
  • What side hustles exist for teenagers and young adults?
  • Why should all people do a job they hate once in their life?

Further Reading

In the article below, I discuss:

  • What are inverse ETFs in 2021? What are the best inverse ETFs in 2021 or beyond? I explain below why the answer is……none of them! 
  • If you invest $1,000 a month into the stock market every month, how long until you can become a millionaire? You might be shocked by the answer to this one, and the maths behind it! 
  • Are technology stocks more volatile than normal stocks? Is this volatility a problem if you are a long-term investor? Also, should we make a clear distinction between individual technology stocks and the Nasdaq as an index, which is tech-focused?

Below is a preview of one of the answers

I will give you some maths/statistics later on which will shock most people…..even some people who have read a lot about investing.

Before doing that, it has to be mentioned that the answer depends on the following variables:

  • How the stock markets perform? You can’t control this one and nobody can predict this for sure.
  • More specifically, which years market perform after you get started. More on that below.
  • If you are looking at $1million in nominal terms or real terms after inflation.

Let’s take the S&P500 as an example. It has given investors about 11.1% since 1950, adjusted for dividend reinvestment.

That is over 7% per year adjusted for inflation.

Yet some periods, like the 1990s and 2010-present, are better than that, and some are much worse.

There have been some decades where it has given 0%. Other decades where it has done as much as 16%-18% adduced for dividend reinvestment.

Let’s imagine the S&p500 did exactly 11.1% every year.

It won’t happen but just let’s do this as an exercise.

It would take you about 21.5 years in that case to become a millionaire in nominal terms, 27 years to reach 2 million, 31 years to reach 3 million.

It will take you 40 years to reach 8 million and about 42.5 years to reach $10 million.

The speed in which you would accumulate wealth at the later years would accelerate due to compounding.

Of course, if inflation is running at 2% per year, it will take you longer to reach those thresholds.

However, as mentioned, that won’t happen.

So let’s look at two different example scenarios to illustrate a point:

Example scenario 1.

You invest $1,000 a month consistently with no lump sum injections.

Years 1–5 you get 0% per year.

Years 6–10 you get 2% per year

Years 11–20 you get 17.7% adjusted for dividends reinvested.

In this case you have reached millionaire status in 20 years. 1.5 years quicker than the constant 11.1% example given above.

Example scenario 2

You invest $1,000 a month consistently with no lump sum injections.

Years 1–10 you get 17.7% adjusted for dividends reinvested.

From year 11 onwards you get 2% per year

Do you know how many years it will take you to become a millionaire in this situation……37–38 years.

Yes 37–38 years.Almost a decade longer than in example scenario one.

If you don’t believe check out this calculator – Compound Interest Calculator

Here is example scenario one:

To see more click below:

What are the best inverse ETFs in 2021?

SUBSCRIBE TO ADAM FAYED JOIN COUNTLESS HIGH NET WORTH SUBSCRIBERS

SUBSCRIBE TO ADAM FAYED JOIN COUNTLESS HIGH NET WORTH SUBSCRIBERS

Gain free access to Adam’s two expat books.

Gain free access to Adam’s two expat books.

Get more strategies every week on how to be more productive with your finances.