3 actions that could help you retire from a millionaire
MMost of us – with the possible exception of billionaires – would love to retire as millionaires. In fact, for many people, even $1 million might not be enough to support us in retirement with the lifestyle we’re used to.
Social Security will one day be a valuable source of income for most of us, but the average annual benefit is around $20,000 a year today, and relatively few collect more than $40,000. It is therefore important for many of us to save and invest for retirement – starting as early as possible.
Here are three actions that can help you raise a million dollars for your retirement.
Pfizer (NYSE: PFE) has long been a somewhat household name in America, but it’s become much more of a household word now that tens of millions of doses of its COVID-19 vaccine have been administered, with millions of boosters also administered – and more on the way.
For its 2021 fiscal year, Pfizer’s revenue nearly doubled from year-ago levels — clearly with the vaccine as a tailwind — while its net income also nearly doubled. In the fourth quarter alone, revenue and profit were up 105% and 156%, respectively, year over year.
These are extraordinary numbers, and they will probably not be the norm in the future. But Pfizer has a lot of advantages, including these factors:
- His COVID-19 vaccine is still in high demand and the pandemic doesn’t appear to be ending any time soon.
- Pfizer also offers an antiviral drug, Paxlovid, to treat people diagnosed with COVID-19. He expects the drug to generate at least $22 billion in sales worldwide in 2022, but it could be more.
- Pfizer’s deep pockets mean it can buy into smaller companies that have attractive products. He recently acquired Arena Pharmaceuticals, for example, to obtain his promising anti-inflammatory, Etrasimod.
- Like any big pharmaceutical company, Pfizer has a lot of drugs in development. Its pipeline recently featured 89 formulations, of which 27 were very advanced, in phase 3 trials, and 25 others in phase 2.
How will the Pfizer shares in your portfolio perform? There’s no way to know for sure, but my colleague Alex Carchidi thinks the stock could become a trillion-dollar company within 18 years. With a recent price-to-earnings (P/E) ratio of 13, well below its five-year average of 18, Pfizer shares look reasonably to attractive these days.
2. Coinbase Global
If you’re worried about missing out on the cryptocurrency craze but struggling to decide which cryptocurrency to buy, if any, here’s a great way to invest in crypto without buying crypto – buy Coinbase global (NASDAQ: CURRENCY).
Coinbase is a major crypto-trading platform – so if there is a lot of buying and/or selling of cryptocurrencies, it is likely to profit. In its own words, “Around 89 million verified users, 11,000 institutions, and 185,000 ecosystem partners in over 100 countries trust Coinbase to invest, spend, save, earn, and use crypto easily and securely. security.”
The company’s 2021 fiscal year saw its trading volume increase by 766%, to $1.67 trillion, while the company’s revenue grew from $1.3 billion in 2020 to $7.8 billion. dollars in 2021, a gain of more than 500%. It aims to grow by adding more cryptocurrencies to the ones it offers and is also planning an NFT marketplace, among other initiatives.
Coinbase is not without risks, of course. For example, it faces competition from other crypto trading platforms, and its transaction expenses eat up a larger portion of its revenue – from 12% in 2020 to 17% in 2021. a new and dynamic area of investing, so if you’re investing in Coinbase, plan to monitor it regularly to make sure it’s still performing as expected. For example, it derives much of its revenue from trading fees, but fees could drop over time, especially due to competition – traditional stock trading has fallen to naught at many good brokerages, after all. .
Still, take a closer look at the company if you’re interested, as it seems to have a promising future. Its shares have recently fallen almost 60% from their 52-week high, making them more attractive with a recent P/E ratio of 13, well below last year’s 21.
If you’re still unsure, maybe add Coinbase to your watchlist, waiting for an even better price.
3. Alphabet letters
Then there is Google parent Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL). It’s already helped many people become millionaires – and it looks like it’s set to hit more millionaires in the years to come.
Alphabet is so much more than Google, as it’s also home to a bunch of diverse businesses, some of which are extremely profitable. For example, it has the widely used Android mobile operating system, as well as YouTube and a cloud computing service. It also owns the Google Play app store, smart thermostat maker Nest, and Fitbit, among others.
While it is generally difficult for large companies to grow quickly, this has not been the case for some, such as Alphabet. In its 2021 fiscal year, Alphabet saw its revenue jump 41% from 2020 to $257.6 billion, while its net profit jumped 89%. His stock has gone up so much that he has a stock split coming up.
A word of warning
These three companies are promising candidates for places in your portfolio, but don’t count on any one of them to give you a million dollar retirement. They are well positioned for a splendid future, but the fortunes of each company can change over time. For best results, we recommend spreading your hard-earned dollars across at least 25 companies and aiming for at least five years.
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Suzanne Frey, an executive at Alphabet, is a board member of The Motley Fool. Selena Maranjian owns Alphabet (A shares), Alphabet (C shares) and Coinbase Global, Inc. The Motley Fool owns and recommends Alphabet (A shares) and Coinbase Global, Inc. The Motley Fool recommends Alphabet (C shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.