The dream of many investors is to create a portfolio that does the work for you: to build a big enough portfolio that the long-term power of compounding does more for your wealth creation than you are.
The good news is that it’s very achievable
With the proper planning, discipline, and long-term commitment, you can create a substantial passive income stream that helps get you closer to retirement or just pay the bills. But you need to know what it takes to get there. Without a plan, it’s little more than hope.
Understanding the numbers and choosing the right exchange-traded fund (ETF) is the plan that actually gets you there. The right ETF for me is the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD).