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How To Make $100 Per Day With Index Funds

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Here's the complete tutorial to make $100 Per Day in Passive Income by Investing in Index Funds - Enjoy! Add me on Instagram: GPStephan
The YouTube Creator Academy:
Being able to make $100 per day passively, from an easy investment that ANY can make, is going to take time. The GOOD NEWS is that it’s not difficult, there’s NOTHING complicated about it…but, you’ll need to be okay building this up, and not rushing the process to try to make as much money as fast as possible…otherwise, it’s not going to work.
The first, and probably MOST COMMON approach that most people automatically think of - is DIVIDENDS.
Generally, they’ll range anywhere from 2.5% if you’re buying into a real estate index fund, 1.26% if you’re buying the SP500, 1.2% if you’re buying the entire market…or, if you’re really wanting to GO FOR IT…as high as 7% if you’re ONLY buying a high yield dividend fund. Overall, though - across MOST index funds, you’ll find an annual dividend payment of anywhere from 1.2-2.5% annually, and ALL OF THAT is probably going to be the easiest passive income you’re ever going to make in your entire life.
The second approach to earning passive income with Index Funds is simply - GROWTH.
An investment in something like a Total Stock Market Index Fund is literally an investment that the entire economy will continue growing, businesses will become more efficient, and other people will invest to become a part of that…and, historically, those investments have gone up above 8% per year. If we go back EVEN FURTHER than that, just within the US…throughout the last 100 years, the SP500 has seen a 10% annualized return with dividends reinvested.
And the BEST part with this is that - you won’t be taxed on this growth and profit UNTIL YOU DECIDE TO SELL. That means, essentially, your money continues growing tax free - up until the point where you want to spend the principle. At THAT point, you’ll be taxed at long term capital gains rate…which means, you can strategically sell your investments at different times to make sure you’re in the lowest tax bracket possible.
If you JUST look at this OBJECTIVELY from the perspective of dividends…it’s a lot. If you average a 2% dividend paid to you annually…you’ll need $1,850,000 invested to make $100 per day from an index fund. Now, this isn’t impossible…and, by investing an average of $17 per day…your investment should grow to that amount within 40 years. Bump that up to $30 per day and you’ll get there in 33 years, and if you can invest $50 per day…you’ll get there in 27 years.
But if you invest for a combination of dividends AND growth: assuming that you could periodically SELL 4% of your portfolio every year as passive income…you could achieve your goal of $100 per day by having a total of $920,000 invested in a broad fund covering the entire stock market.
Investing $10 per day will bring you to that amount in 38 years….it’s a long time, I know…but, $10 per day is amount that most of us could do on auto-pilot without given it a second thought - and, by the time you’re about to retire - you will have hit that goal with almost no effort whatsoever.
However, at $20 per day…you’ll reach this goal in 30 years. With $30 per day, it’s 25 years… at $50 per day, it’s 20 years, and if you can swing $100 per day…you’re just 13 years away from making that a reality, and everything after that is purely passive.
My ENTIRE Camera and Recording Equipment:
The YouTube Creator Academy:
Being able to make $100 per day passively, from an easy investment that ANY can make, is going to take time. The GOOD NEWS is that it’s not difficult, there’s NOTHING complicated about it…but, you’ll need to be okay building this up, and not rushing the process to try to make as much money as fast as possible…otherwise, it’s not going to work.
The first, and probably MOST COMMON approach that most people automatically think of - is DIVIDENDS.
Generally, they’ll range anywhere from 2.5% if you’re buying into a real estate index fund, 1.26% if you’re buying the SP500, 1.2% if you’re buying the entire market…or, if you’re really wanting to GO FOR IT…as high as 7% if you’re ONLY buying a high yield dividend fund. Overall, though - across MOST index funds, you’ll find an annual dividend payment of anywhere from 1.2-2.5% annually, and ALL OF THAT is probably going to be the easiest passive income you’re ever going to make in your entire life.
The second approach to earning passive income with Index Funds is simply - GROWTH.
An investment in something like a Total Stock Market Index Fund is literally an investment that the entire economy will continue growing, businesses will become more efficient, and other people will invest to become a part of that…and, historically, those investments have gone up above 8% per year. If we go back EVEN FURTHER than that, just within the US…throughout the last 100 years, the SP500 has seen a 10% annualized return with dividends reinvested.
And the BEST part with this is that - you won’t be taxed on this growth and profit UNTIL YOU DECIDE TO SELL. That means, essentially, your money continues growing tax free - up until the point where you want to spend the principle. At THAT point, you’ll be taxed at long term capital gains rate…which means, you can strategically sell your investments at different times to make sure you’re in the lowest tax bracket possible.
If you JUST look at this OBJECTIVELY from the perspective of dividends…it’s a lot. If you average a 2% dividend paid to you annually…you’ll need $1,850,000 invested to make $100 per day from an index fund. Now, this isn’t impossible…and, by investing an average of $17 per day…your investment should grow to that amount within 40 years. Bump that up to $30 per day and you’ll get there in 33 years, and if you can invest $50 per day…you’ll get there in 27 years.
But if you invest for a combination of dividends AND growth: assuming that you could periodically SELL 4% of your portfolio every year as passive income…you could achieve your goal of $100 per day by having a total of $920,000 invested in a broad fund covering the entire stock market.
Investing $10 per day will bring you to that amount in 38 years….it’s a long time, I know…but, $10 per day is amount that most of us could do on auto-pilot without given it a second thought - and, by the time you’re about to retire - you will have hit that goal with almost no effort whatsoever.
However, at $20 per day…you’ll reach this goal in 30 years. With $30 per day, it’s 25 years… at $50 per day, it’s 20 years, and if you can swing $100 per day…you’re just 13 years away from making that a reality, and everything after that is purely passive.
My ENTIRE Camera and Recording Equipment:
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