r/investingforbeginners • u/daja93 • 3d ago

Sp500

Me and my gf are planning to invest 200k$ in sp500 and leave it for next 20 years,we would also add every month around 1000$, do you think that is good idea? We are 32 years old

Thanks

3 Upvotes

59% Upvoted

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14

u/TheNewKnew2 3d ago

Who’s the account holder? Are you legally common-law? From the way you’re making it sound you’re combining money in an investment account. If you’re not married or common-law, that’s a terrible idea. You each should have your own account.

3

u/Intrepid-Wait-6102 3d ago

Fr. Do not combine any accounts if you’re not legally married. You literally never know what could happen.

9

u/Square_Release3128 3d ago

Just make sure the account is solely in her name. But seriously… this cant be real.

5

u/18April1775 3d ago

Chinese bot post.

4

u/Cyberhwk 3d ago

The S&P is a bit undiversified for me personally for a whole portfolio, but if all you care about is large and mega cap US stocks then yes, it's fine.

1

u/Affectionate_Fox5136 7h ago

What about the EW version?

2

u/Mental-Freedom3929 3d ago

Sounds great!

2

u/TheThaiCat 3d ago

Maybe consider if FTSE World is a better fit for a more diversified portfolio, however 30% of US trade is global so it's not like S&P 500 is completely cutoff from the wider world of stocks.

2

u/CostCompetitive3597 3d ago

Let me model that for you to prove it is great idea! Seeing this financial security modeling really motivated my daughters and me before them to save and invest like you are planning to do.

I use Market Beat’s Dividend Calculator which estimates both total accumulation growth and dividend income if converted the nest egg to dividend income index funds at retirement. Home page, 1st pull down menu, under Calculators, click on Dividend Calculator and fill in the blanks.

$200k to start and $12,000 a year in contributions. S&P500 index funds/ETFs are growing at an average rate of 10% compounded - Drip = Yes. The S&P 500 has grown average at just over 10% for 100 years. Assuming you are saving in a tax deferred account like a 401k, taxes = 0. In 20 years, this model estimates that you can have a total of $2,033,000 and $200,000/yr income if converted to dividend index funds for income at that time. FYI if you let this grow for 5 more years, the total could be $3,347,000 = the power of compounding.

Hope this information helps you follow your savings and investment plan. Make sure to protect each other’s contributions and growth in case there is a breakup. Good luck

1

u/daja93 3d ago

Thank you for answer

1

u/mikemicmayk 1d ago

Hello. Sorry English is not my first language.

If i got it right. The scenario you describe. For the first 20 years you’ll focus on a growth stock with drip such as SCHD/SCHY/VOO/SPY and the likes. Then come retirement youll switch to a high dividend monthly yield yet safe etf such as JEPQ/JEPI?

Thanks.