NASDAQ Strategy

Description

This DQ is a combination of a Practical Task as well as a Post.

We are going to look at NASDAQ Annual Returns. Please find the graph as well as the tabulated yearly returns of NASDAQ. The average of the annual returns from 1975 to 2020 is 15.11%.

Read the Scenario described below.

As part of your DQ Task – Please share this Information with 3 – 5 Friends in person or over the phone, whom, you think would want to enjoy financial freedom.

Let’s assume, your friends had no one to guide them like Dr. N or did not have the opportunity to take a Financial Management Course.

Check with your friends, if they would save/invest $5 daily for their own future or for their children’s future, since the day they or their children turn 16 till they turn 21 (Just for these 5 years. Approximately from the time you graduate high school to the time you graduate college).

After that, they do not have to contribute that $5 daily. $5 is the average price paid for a Starbucks Coffee order. Do any of you go to Starbucks Daily?

If they choose to take on the responsibility of financial freedom, would adding a responsibility of $5 per day (giving up one coffee at Starbucks per day) be an impossibility?

Ask them, if they realized, that just in investing $5 in the market, they would have a nice chunk of change of approximately $6,659,259.46 (Yes That is Right) to retire with?

  • What are your friends reaction, thoughts and response to this example?
  • What are your thoughts on this example and would you use this in your real life or if you had a son or daughter, will you use this example for them or educate them in real life?
  • If we all can technically retire with approximately $6.66 Million, is exposure to examples like this and lack of financial discipline the reason most of us don’t?
  • As continuation of our efficiency debate. Will the market or NASDAQ continue to make on average 15.11%?

Requirements

– The main DQ response must have at least 300 words. 

– Must organize the DQ response into 3 – 5 different paragraph.

– Must use Dr. N’s example for this post. 

 

Scenario:

I am assuming everyone in this class was typically born after 1975. In case you were born earlier than that, don’t worry, just follow the example.

Suppose, you invested $5 everyday, from the day you were 16 till the day you turned 21 at an average NASDAQ return of 15.11%, then it would have compounded to $13,628.61.

Calculator.Net to Compute Future Value

Number of Periods (N) = 5 years * 365 days = 1825 days

Interest Rate (I/Y) = 15.11 / 365 days = 0.0414%

Suppose, you had invested $13,628.61 when you turn 21 into a retirement account that again earned the average market return of 15.11%, then it would have compounded to $6,659,259.46, when you turn 65 and are ready to retire.

That’s right. I know most of you would not believe this number. But, please do your research on NASDAQ returns and go on calculator.net and verify for yourself.

If 15.11% on average return by NASDAQ surprises you, please watch

Jim Simmons Video

Jim Simmons has produced an average annual gross return of 66% and an annual net return of 49%. Google and read about Renaissance Technologies and Medallion Fund, if you are curious.

Let’s also assume that no one ever helped you towards your financial freedom and that you told yourself, I AM A RESPONSIBLE ADULT.

No one cares about my financial freedom as much as I DO.

I CARE about Making or Earning money, Spending money, Saving money, Investing money, Giving money (To Charity) as well as Retiring with money.

Make a resolve, that, you will remember for the rest of your life, the Jim Simmons Philosophy.

“”BAD IDEAS ARE GOOD, GOOD IDEAS ARE TERRIFIC AND NO IDEAS ARE BAD””

Inaction and pessimism did not build this society or help humanity in anyway.

Any technology or any innovation was a result of dream, hope, optimism and action or hard work towards that dream.

Even the vaccine that we have today for Covid, was not a result of pessimism and inaction. It is the outcome of optimism and hard work. 

Now, humanity has a hope of returning to normalcy.

If you care about your financial freedom, because REMEMBER – NO ONE ELSE WILL then, all it takes is sacrifice ONE Starbucks coffee daily and save $5 from the time you turn 16 till you turn 21. Is that an impossibility?

Please remember the phrase “”ROME WASN’T BUILD IN A DAY””.

This proverbial saying suggests that a complex task or great achievement takes time and effort and should not be rushed.

I always encourage my students to let go of inaction and pessimism. Let go of Idleness and embrace hope and action. It is your financial future.

 

As the American Heart Association recommends 150 minutes of physical activity per week, Dr. N. recommends $5 per day from your age of 16 to 21 towards your financial freedom and retirement as a millionaire.

 

Also, remember, we are not looking at individual diversified funds like the Magellan Fund, Baillie Gifford American Fund, Morgan Stanley US Growth Fund, etc.

Check out the top 25 performing funds of all time.

Top 25 Funds of All Time

You can use apps like Robinhood or Webull to invest in ETF’s that track NASDAQ.

QQQ ETF that Mimics NASDAQ

A single stock is more risky than the market (NASDAQ).

Single stock has both systematic as well as unsystematic components of risk, but Market has only systematic risk, which we all cannot escape, whether we participated in it or not.

Also, market goes up and down, but in the long term it is significantly up.

Now some of you might be worried about Taxes.  Here are my thoughts.

If you were disciplined enough for 5 years and eventually made $6.6 Million for yourself or for your children, even with a 30% tax adjustment you will be left with $4.6 Million.

Think about where those $2 Million paid in taxes is going to go? Who is getting that $2 Million? Government.

It is going towards government projects and government spending that everyone living in this country can be benefitted from.

So, having a comfortable financial nest egg of $4.6 Million, why not pay the $2 Million that will go towards helping others in our country and towards nation building?

You do not have to follow this, but am just throwing alternative thinking out for you to intensely evaluate.

 

Please look at the attached PDF and you can go on the future value calculator link above and compute for yourself.

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more