Achieve a million-dollar retirement fund by investing $30,000 in these three stocks and enduring a decade.
Retirement savings are a concern for many Americans, with only 16% having saved over $1 million, according to a recent survey. That's a problem because many now need at least $1 million to comfortably retire in 15 states, according to GOBankingRates. If you're still a decade away from retirement, investing in high-growth stocks could potentially generate millionaire-making gains. For instance, if you have $90,000 to invest, you could split it between three high-growth stocks.
Three stocks with potential for significant growth over the next decade include MicroStrategy, Archer Aviation, and Lumen Technologies.
MicroStrategy
Once a slow-growth data mining and analytics company, MicroStrategy transformed in 2020 by investing in Bitcoin. By the end of 2024, its Bitcoin holdings swelled to 446,400 Bitcoins – worth $41.8 billion as of this writing. The company's software business is still growing slowly, but it's expanding its cloud-based subscription services and AI tools to offset declining sales of on-site software. MicroStrategy plans to continue investing in Bitcoin and may become an all-in bet on the cryptocurrency.
Archer Aviation
Archer Aviation is a producer of electric vertical take-off and landing (eVTOL) aircraft, which are promising for short-range air taxi services. The company already secured air taxi contracts from big clients like United Airlines and has partnerships with the U.S. Air Force and Future Flight Global. Archer aims to produce 10 aircraft in 2025, 48 in 2026, and so on, with the goal of launching air taxi services by 2025. However, its enterprise value is high, making it an expensive investment.
Lumen Technologies
Lumen, the telecom company formerly known as CenturyLink, struggled in 2021 with declining revenue and steep losses. But it secured billions in AI infrastructure deals with Microsoft and other cloud software giants, which revitalized its struggling business wireline division. Analysts still expect Lumen's annual revenue to decline for at least the next two years, but its growth is expected to accelerate once those long-term AI infrastructure contracts kick in. With a low enterprise value, Lumen has the potential to soar if its bet on wireline services turns it into an essential infrastructure provider for the AI market.
While all three companies have potential for growth, reaching $1 million from an initial investment of $90,000 is an ambitious goal and would require extremely high compound annual growth rates (CAGRs) for any of these stocks.
Investing a portion of your retirement savings into high-growth stocks like MicroStrategy, Archer Aviation, and Lumen Technologies could be a strategic move in finance, as these companies show significant growth potential. However, it's crucial to remember that achieving millionaire-making gains from an initial investment of $90,000 would require exceptionally high compound annual growth rates (CAGRs).
