Comments on: How to Build a Money Making Machine That Will Pay For Your Early Retirement

By: TJ

TJ — Thu, 25 Apr 2019 18:03:37 +0000

From what I can tell VTSMX is now closed, since VTSAX reduced minimum investment to $3K, same as VTSMX was. VTSAX has lower fee than VTSMX and invests in the same stocks.
https://investor.vanguard.com/mutual-funds/profile/VTSMX

By: Mike @ MikedUp Blog

Mike @ MikedUp Blog — Fri, 27 Apr 2018 17:46:44 +0000

Ty,
Great info and you make a compelling case for using stocks to generate revenue. I would say that although there are similarities between buying stocks and owning a business, there remain some critical differences that have drastic impact on your potential return:
By owning your own business you have control over the ultimate profit (return) of your investment. You can adjust hiring, advertising, purchasing, customer relationships, etc. You have total control to make positive change and improve your return.

With investing in stocks, you can buy and sell, but not much else.

As Denzel said, “This $?/t’s chess, not checkers.”

Both have advantages and neither is right or wrong, but they definitely have different attributes and qualities. Thanks for the article!

By: Michelle | Operation Husband Rescue

Michelle | Operation Husband Rescue — Wed, 25 Apr 2018 22:35:39 +0000

This is a great idea. Using the stock market as a “business” is a lot easier than starting an actual business, in my opinion. I started my small business a year ago, and I had to go through filing all the paperwork and registering here and there and getting an EIN and all the red tape that starting a business involves. You don’t have to do that to invest in the stock market.

By: Ty Roberts

Ty Roberts — Tue, 27 Feb 2018 22:55:40 +0000

In reply to Steve. Smart indeed! I like the way she thinks :D

By: Steve

Steve — Mon, 19 Feb 2018 17:40:48 +0000

Great article Ty, my wife and I have been saving money for years with the thought of opening a small business. Just last year we decided that the timing is just not right, at the moment, or maybe ever. So I started plunking our hard earned savings into mostly index funds with about 20% invested in dividend producing, hopefully, growth stocks. Recently I was lamenting to my wife about how I hope when I’m old and grey I don’t regret not starting a business. She said what do you mean you already have a business? I said what are you talking about? She said well you certainly spend enough time reading and learning about investing and money management for that to be a full-time job. So our investments are your business. Pretty smart if you ask me.

By: Ty Roberts

Ty Roberts — Wed, 24 May 2017 01:25:20 +0000

In reply to Graham @ Reverse The Crush. Thanks, Graham! Outside of my index funds, the only individual stock I own is what my employer gives me. I've never got into buying individual shares, but I've toyed with the idea of converting my employer stock into some dividend stocks.

By: Graham @ Reverse The Crush

Graham @ Reverse The Crush — Tue, 23 May 2017 20:17:39 +0000

Great post, Ty!
Buying an index fund is the best investing advice you can give to someone looking for a place to start. My advice would be the exact same thing. If you want to buy other stocks, the majority of investors should use no more than 10 percent of their money for that. Although I’m more of a dividend growth investor myself, I can’t argue that this is probably the best strategy. Also, I love the businesslike approach to investing. I certainly view my portfolio as a business. Thanks for sharing! Have a great week!

By: Ty Roberts

Ty Roberts — Mon, 15 May 2017 14:48:59 +0000

In reply to Live Free MD. Thanks, Live Free MD! True, you'll never hit a "grand slam" with this approach to low cost index investing like you could with a traditional business, but you won't strike out as much either. This particular post, and the idea of a quick and easy money making machine, was written for people that just aren't cut from the entrepreneurial cloth, don't have much appetite for risk, and also for the rest of us to look at stocks a little bit differently. I view creating your own digital product, like a book or an online course, as different than a traditional business since there's far less risk. I'm a big fan of this strategy since these types of products definitely have the potential to become money making machines, and I'm all for creating as many income streams as possible! If someone has the time or inclination, then they should definitely consider creating a digital product. Thanks for the comment.

By: Live Free MD

Live Free MD — Mon, 15 May 2017 06:35:37 +0000

Great analogy. I agree that owning stocks is a quick and easy way to buy a “money-making machine.” The main benefit is that investing in stocks requires minimal upfront capital, the risk is manageable, and the income is completely passive.

However, compared to starting your own business, the income generated is relatively limited. For example, the dividends kicked out by the Vanguard Total Stock Market Index Fund amount to around 2% of the total amount invested. It would therefore take $1 million invested to make $20,000 (I am ignoring appreciation for the moment).

In comparison, if you are able to create a product, such as a book, course, widget, etc., then you generate income every time that product is sold and the returns are limitless.

Obviously much higher risk and much less of a sure thing, but I think everyone should be thinking about possible business ideas. That seems to be the quickest route to wealth compared to punching the time clock every day.

By: Ty @ Get Rich Quick'ish

Ty @ Get Rich Quick'ish — Fri, 14 Apr 2017 17:08:00 +0000

In reply to Amy @ Life Zemplified. Thanks Amy! Love your perspective as someone with significant experience running traditional businesses!