Gobs of good stocks can turn $1,000 per month into $1 million or more. It just takes disciplined investing, a fair amount of time, and, of course, a good stock -- or stocks.
Here's one such stock from the financial sector: SoFi Technologies (SOFI 4.48%). It has been averaging annual gains of 43% over the past three years, though it's down 25% year to date. That presents an attractive buying opportunity.
Image source: Getty Images.
The table below shows that you can reach $1 million with it or another stock even if it averages 8% growth.
|
$1,000 Invested Per Month (in Years) |
8% Annual Growth |
10% Annual Growth |
12% Annual Growth |
|---|---|---|---|
|
5 years |
$70,399 |
$73,261 |
$76,234 |
|
10 years |
$173,839 |
$191,249 |
$210,585 |
|
15 years |
$325,825 |
$381,270 |
$447,357 |
|
20 years |
$549,144 |
$687,300 |
$864,629 |
|
25 years |
$877,271 |
$1,180,165 |
$1,600,006 |
|
30 years |
$1,359,399 |
$1,973,928 |
$2,895,992 |
|
35 years |
$2,067,802 |
$3,252,292 |
$5,179,962 |
|
40 years |
$3,108,678 |
$5,311,111 |
$9,205,097 |
Source: Calculations by author via Investor.gov.
SoFi Technologies operates in the promising realm of fintech (financial technology). It's an online bank offering a wide range of personal finance services. It began mainly as a student loan servicer, but it now offers everything from auto loan refinancing to personal loans, mortgages, credit cards, investments, and, of course, banking.
NASDAQ: SOFI
Key Data Points
SoFi began with younger consumers, and it has continued courting them -- for example, by pushing into cryptocurrency. It's succeeding, too, posting a revenue gain of 37% year over year for its fourth quarter and a fee-based revenue gain of 53%. Its membership, too, is growing briskly, rising 35% year over year to 13.7 million people.
CEO Anthony Noto has noted, "Our one-stop shop is scaling exactly as intended and delivering a winning combination of growth and returns. We added a record 1 million new members this quarter and drove record product growth."
Best of all, SoFi's stock seems reasonably valued or even a bit undervalued at recent levels.
