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How to invest up to $1m by Retirement

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Investing is always a good idea, even if you don’t have many investing years left until retirement. There are three factors that will ultimately impact your overall savings: the amount of money you have to start investing today, the number of years left, and the level of risk you’re willing to take on.

If the number of years is insufficient to grow your portfolio, then you could try and make up for that by investing more money or taking on a bit more risk. However, I’m going to assume that in the vast majority of cases, investors can’t simply just increase their level of investment overnight.

That leaves the level of risk as the factor that you could most likely adjust to help to try and improve your overall returns. However, that doesn’t mean you have to invest in penny stocks or ultra-high-risk investments. Instead, I’m talking about choosing growth stocks to help get your portfolio to your desired goal rather than investing in dividend stocks.

Why growth stocks could be the better option

While dividend stocks may be a good way to slowly grow your portfolio over the years, growth stocks can provide double-digit returns if you’ve found a winner. That may be easier said than done, but that’s where the risk comes in. Consider a stock like Canada Goose Holdings (TSX:GOOS)(NYSE:GOOS), which has been one of the top growth stocks on the TSX in recent years.

The stock has generated some terrific returns since its IPO, but it has had some pretty big bumps along the way as well. From January through until the end of July, the stock had risen by a modest 3.7%. However, that includes a very steep decline after a bad quarter sent the stock reeling. In 2018, Canada Goose stock soared a whopping 50%.

As you can see, there can be a lot of volatility in your portfolio from one year to the next. That’s the risk with growth stocks, but a good stock like Canada Goose is still a good bet to rise in value over the long term.

Let’s take a look at how investing in a growth stock could help get you closer to your retirement goal.

A sample model

If you have at least $100,000 to invest in today, and a growth stock like Canada Goose were to even average returns of 17% per year, you could hit the $1,000,000 mark by the end of age 64:

AgeYearPortfolio
501$117,000.00
512$136,890.00
523$160,161.30
534$187,388.72
545$219,244.80
556$256,516.42
567$300,124.21
578$351,145.33
589$410,840.03
5910$480,682.84
6011$562,398.92
6112$658,006.74
6213$769,867.88
6314$900,745.42
6415$1,053,872.15

To earn a 17% return on average is by no means a guarantee, even if you do find a good growth stock. While Canada Goose could be a good investment today, in all likelihood, you may need to swap it out for another growth stock at a later point in time. As good as Canada Goose stock may be, I wouldn’t assume it will be a lock to produce 17% returns every year.

That’s where it’ll be important to re-evaluate every year which growth stock may provide the most potential or which industry might provide the best option for investors.

However, as you can see from the above table, taking on some risk could be a way to help accelerate your returns. A good compromise could also be to find a dividend stock that pays a high yield and that can provide a decent return as well.

Bottom line

There are many paths that you can take, and knowing what kind of return you’re going to need to be aiming for is one way to at least help point you in the right direction.

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Welcome to Lindas Embroidery 15k Designs Collection ! | Linda's Embroidery Designs

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Welcome to Lindas Embroidery 15k Designs Collection ! | Linda's Embroidery Designs



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Embroidery Collection Of More Than 15,000 Designs Suitable For Almost All Types Of Machines.

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LCD Monitor Repair Made Easy – How To Repair LCD MOnitors

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LCD Monitor Repair Made Easy – How To Repair LCD MOnitors



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Lcd Monitor Repair Made Easy ~ How To Repair Lcd Monitors With Step-by-step Videos ~ High Quality Product In A Brand New Niche ~ Very Hungry Customers For This One Of A Kind Product

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Warren Buffett favorite investing strategy is gaining steam

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Traders work on the floor at the NYSE in New YorkReuters


Value investing, the strategy of stock picking popularized by Warren Buffett, is having a moment.

“Despite struggling in early October, Value recovered and ultimately outperformed, advancing 0.9% in October, and remains ahead in November,” wrote a group of Bank of America Merrill Lynch analysts led by Savita Subramanian.

Value investors pick stocks that they think the market is underestimating, and are thus trading below their intrinsic value. This trend outperformed momentum investing, another strategy where investors look to capitalize on market trends.

“We think this trend could continue,” the analysts wrote. That’s because value stocks are inexpensive relative to stocks that fit into the momentum category, and recent stabilization in macro data paints a positive picture going forward, according to the analysts.

In addition, value investing looks more stable than quality investing, according to BAML. “Quality has led in 2019, but now looks risky,” the analysts wrote. “It’s expensive, crowded and likely to lag if macro data inflects higher.”

Value, on the other hand, performs well in “early cycle” environments, which the analysts think is the next market phase.

“The only time in history that value has gotten this cheap was in 2003 and 2008, when Value outperformed Momentum by 22ppt and 69ppt, respectively, over the subsequent 12 months,” the analysts wrote.

In addition, value stocks could outperform even if the broader market stumbles, according to BAML. “When value’s shrank to all-time lows in Sep. 2000, value outperformed by 24ppt in next six months but the S&P 500 sported losses,” the analysts wrote.

Here are the seven main reasons to favor value, according to Bank of America Merrill Lynch:

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