Want $1 Million in Retirement? Invest $200,000 in These 3 Stocks and Wait a Decade

Are you dreaming of retiring with a cool million in the bank? It might sound like a tall order, but with the right strategy and a bit of patience, it's entirely possible. In this article, we'll explore a simple yet effective investment plan that could help you reach your goal in just 10 years. So, buckle up and let's dive in!

First things first, let's talk about the power of compounding. Compounding is when your investments generate returns, and those returns generate their own returns over time. It's like having a money-making machine working for you 24/7. To illustrate this, let's consider an investment of $200,000 in a stock with an average annual return of 10%. In 10 years, you would have:



That's right, you'd have over $672,000! But we're not stopping there. We want to reach $1 million, so let's find some stocks that can help us get there.

1. Cohen & Steers Quality Income Realty Fund (RQI)

RQI is a closed-end fund that primarily invests in equities and preferred securities of real estate companies, including REITs. It offers a monthly distribution, with a current yield of around 8%. RQI's portfolio is heavily weighted in U.S. REITs, with significant positions in high-quality REITs like Ventas (VTR), Healthpeak Properties (PEAK), and Welltower (WELL). The fund benefits from Fed rate cuts and has a portfolio that is well-positioned to weather market fluctuations. RQI's valuation has become more attractive, presenting a buying opportunity as we enter 2025.



2. Ventas (VTR)

Ventas is a health-care REIT that owns and operates senior housing facilities, medical office buildings, and other health-care properties. It has a trailing 12-month dividend yield of 3.68% and a price-to-fair value ratio of 0.71. Ventas has made strategic partnerships with Ardent Health Services and Wexford, giving it added platforms for consolidation and providing an integrated health-care infrastructure. Morningstar analyst Kevin Brown rates Ventas as having an Exemplary capital allocation rating.



3. Healthpeak Properties (PEAK)

Healthpeak Properties is a health-care REIT that focuses on senior housing, life science, and medical office properties. It has a trailing 12-month dividend yield of 4.53% and a price-to-fair value ratio of 0.74. Healthpeak Properties is well-positioned to benefit from the aging population and the growing demand for health-care services. The company has a strong balance sheet and a history of dividend growth.



Now, let's talk about how to allocate your $200,000 investment across these three stocks. Since we're looking for a 10-year timeframe, we can afford to take on a bit more risk. Here's a suggested allocation:

* Cohen & Steers Quality Income Realty Fund (RQI): 40%
* Ventas (VTR): 30%
* Healthpeak Properties (PEAK): 30%

This allocation provides a balance between income generation and growth potential. Keep in mind that this is just a suggestion, and you should always do your own research and consider your risk tolerance before making any investment decisions.

In conclusion, reaching $1 million in retirement is entirely possible with the right strategy and a bit of patience. By investing $200,000 in a combination of Cohen & Steers Quality Income Realty Fund (RQI), Ventas (VTR), and Healthpeak Properties (PEAK), and holding onto them for a decade, you could be well on your way to achieving your goal. So, what are you waiting for? Start investing today and watch your money grow!