How This 60-Year-Old Built His Own Mutual Fund — Starting with One Share
Let’s break down a Reddit post that lowkey dropped generational wealth advice in one paragraph. A 60-year-old investor shared how he built his own portfolio in his 20s by using DRIPs — Dividend Reinvestment Plans — and let it grow on autopilot for 40+ years.
If you're Gen Z or Alpha and you’ve never heard of DRIPs, buckle up. It’s like DIYing your own mutual fund, but you can start with just one share.
Wait… What’s a DRIP?
DRIP = Dividend Reinvestment Plan.
When you own stock in a company that pays dividends (a portion of profits), you can usually choose to:
- Receive the dividend as cash
- OR automatically reinvest it into more shares of that stock
DRIPs do that second thing — on autopilot. No fees. No guesswork. No need to time the market. You just keep stacking shares over time.
How It Works (In 5 Steps)
- You buy a single share in a dividend-paying company (like Coca-Cola or Johnson & Johnson)
- You enroll in the company’s DRIP (often via Computershare)
- You set up automatic monthly contributions (as low as $25)
- Dividends are paid out quarterly — and reinvested into more shares
- Each time you get more shares, you earn bigger dividends next time
It’s like a flywheel. The longer you leave it alone, the more momentum it builds.
| Year | Shares Owned | Annual Dividends | Reinvested Shares |
|---|---|---|---|
| Year 1 | 10 | $30 | 0.5 |
| Year 5 | 62.7 | $215 | 3.5 |
| Year 10 | 165.3 | $645 | 6.7 |
Real-Life Example: Building a “Mini Mutual Fund” with DRIPs
That Reddit investor bought six DRIPs from “Dividend Aristocrats” — blue-chip companies that’ve increased dividends every year for 25+ years.
- Johnson & Johnson
- Exxon Mobil
- 3M
- Coca-Cola
- Procter & Gamble
- Walmart
He started with minimum contributions. Then life happened — he had kids and paused deposits. But here’s the flex: the dividends kept buying more shares anyway. The account kept growing.
Where to Start a DRIP
You don’t need to go through a brokerage to start a DRIP. Many companies let you do it directly through transfer agents like:
Most DRIPs require you to own at least one share to enroll. Some have minimums like $250–$500 upfront, but after that you can contribute as little as $25/month.
You don’t need thousands: How to Invest with $100 →
Why DRIPs Are Gen Z Gold
- No trading fees or commissions
- Fractional shares to 6 decimal points
- Consistent investing without overthinking
- Compounding returns = passive growth
It’s giving long game energy — and that’s the vibe we need if you want to retire without panic-Googling “how to live on $1k a month.”
TL;DR:
- DRIPs = automatic reinvestment of dividends into more shares
- Great for starting small and growing over decades
- Start with one share and set $25/month to autopilot
- Dividend Aristocrats like Coca-Cola, J&J, and Walmart offer DRIPs
- Use Computershare or Equiniti to manage them
