Making 1 trillion dollar
Making 1 trillion dollar in 120 years by investing and compounding is a very ambitious goal, but not impossible. Here are some steps and concepts you need to know:
Investing means putting your money into something that can generate more money over time, such as stocks, bonds, real estate, or businesses.
Compounding means earning interest on your interest. For example, if you invest $100 at 10% interest per year, after one year you will have $110. But if you reinvest that $110 at 10% interest, after another year you will have $121. This way, your money grows faster and faster as time goes by.
DCA stands for dollar-cost averaging, which is a strategy of investing a fixed amount of money at regular intervals, regardless of the market price. This helps reduce the risk of buying high and selling low, and smooth out the fluctuations in your portfolio value.
To make 1 trillion dollar in 120 years, you need to invest a large amount of money at a high rate of return, and reinvest all your earnings. You also need to avoid taxes, fees, inflation, and other factors that can reduce your returns.
One possible scenario is this:
You start with an initial investment of $10 million.
You invest in a diversified portfolio of stocks, bonds, and real estate that can generate an average annual return of 15%.
You reinvest all your dividends, interest, and capital gains.
You use a tax-deferred account, such as a Roth IRA, to avoid paying taxes on your earnings.
You pay minimal fees and expenses for managing your portfolio.
You adjust your portfolio for inflation, which is assumed to be 2% per year.
Using a compound interest calculator, you can see that after 120 years, your investment will grow to about $1.02 trillion. This is how compounding works in your favor.
Of course, this scenario is very simplified and optimistic. In reality, there are many challenges and uncertainties that can affect your investment performance, such as market crashes, recessions, wars, political changes, technological disruptions, environmental issues, and so on. You also need to consider your personal goals, risk tolerance, time horizon, and liquidity needs. Investing is not a one-size-fits-all solution, and you should always do your own research and consult a professional before making any financial decisions.But it is very much possible if you just active index and chill.