The 20/20/100 Challenge: $20k - 20 years - 100 free trades

Hey guys,

I saw Nab bank has 100 free transactions for 90 days, so I thought to create a challenge.
Conditions are:

- $20k invested (this is a sum I assume everyone can accumulate with a bit of effort and in a short timeframe)
- Can buy whatever you want on the stock market
- 100 max transactions
- Maximum return in 20 years time
- Risk: we assume you will not need the capital invested for 20 years, however you want to preserve the capital -> no speculative investments (e.g. bitcoins)
- Compound the profits, Ideally automatically as the 100 free transaction will last only 90 days.
- Set and forget, no annual contributions

Just to keep the 20 rolling, the idea is to show a 20 yo what he can achieve by 40 if he can save $20k by the age of 20.

Using the compounding super power:
$20k @ 10% = $146k
$20k @ 15% = $400k
$20k @ 20% = $1M

Now, 20% is a bit of dream (achievable anyway with good stocks), however we can agree $1M can set the 20yo financially free.

Let`s check this post again in 20 years time (if we are still alive).

Cannot help much as the stock market is not my speciality.

 

Lot of views, not many answers. Let`s tag same guru: @therealAusting @Il Falco @SatayKing @Heinz57 @The Falcon

 

@HomePage @Redwing @Nodrog @oracle @Frank Manno

 

Only just saw this.

Two trades. Ignore freebies - bait for the unwary. $16,000 AFI. $4,000 MFF. If available, DRP the income.

Walk away.

When or if tax on income becomes burdensom, cease DRP, pay relevant tax, re-invest after-tax income in same proportion and where possible take up SPP.

Walk away.

 

I can still hear Jim Collins of https://jlcollinsnh.com/ fame repeatedly chanting to us FIREflies last year in Equador: "No matter where you are in the world, buy VTSAX, buy as much of it as you can and keep buying it."

So I'll put my whole $20K on VTS (VTSAX equivalent in Australia) and will wait to see if he was right!

 

$7,500 AFI electing DSSP
$7,500 WHF electing BSP
$5,000 QVE electing DRP

Note to future 2038 self, “see I told you, keep it simple silly”

 

Also only just saw this. Dangerous asking me these things at this stage of the night.

Assuming a younger accumulator but there will be lots of variables that are specific to each individual. So this exercise is missing many crucial elements. Hence the following can’t be taken too seriously.

Three Trades:
VAS 40%
VGS 40%
VAE 20%

Or

One Trade:
VDHG 100%

DRP the distributions.

Second option a little more in fees but behaviourally likely more superior. You won’t be focused on the poor performing part of the portfolio and tempted to dump it. With VDHG being a single entity this stuff is hidden from view. End result is less inclination to fiddle, one of the more dangerous threats to investing success.

 

Must be after beer o'clock

 

That and other LICuor.

 

These are my picks.

25% to Washington H Soul Pattinson (ASX: SOL)
25% to ResMed (ASX: RMD)
25% to Westpac Banking Corp (ASX: WBC)
25% to BHP Billiton (ASX: BHP)

Reinvest all dividends

Disclaimer: I have no idea what I am doing.

 

How does it sound a good stock like Amazon that went from $5 to $1800 in 20 years? Netflix from $4.5 to $330? Happy with that too. However looking at US stock there is a bit of correction at the moment.

 

75% VAS
25% VGS

 

I’m assuming your surname is Bogle?

 

VDHG. Shall we all do it? Although not sure I will still have all my marbles in 20 years to report back.

 

If I had the cash spare I would do it but the cash is for another project.

 

Put it on Red..

 

What if you’re colour blind?

 

Ok, brains trust. CMC markets or Selfwealth?

Every month I will be transferring cash in and buying VAS and VGS. That's it. I don't need fancy charting or any bells and whistles. Just easy to use.

CMC is now $9.90 and Selfwealth is $9.50 so I can pick whichever has the best interface.

Thoughts?