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Ultimately, that's the goal. To hit the $1,000,000 mark.

Even if financial advisors argue that you will require an increasingly large nest egg to retire comfortably, $1,000,000 remains and probably always will remain the psychological pinnacle of investment success.

I don't believe the hype anyway. Financial advisors have every incentive to encourage you to give them more money so they may get you where you need to go. What good does it do them to empower people to get there themselves?

With $1,000,000 or, maybe even less, I could work less than part-time and, spending just a few hours a week on my investments, live off of that nest egg until the day I die. If I am lucky, that day will come in no less than about 63 years, when I turn 100 years of age.

As long as I can write covered calls and cash-secured puts in my account, I can milk a fraction of $1,000,000 all the way to my demise. Granted, I would not feel comfortable relinquishing cash flow from work and setting out on such a strategy with much less than a million.

Earlier this week on Seeking Alpha, I showed how investors with considerable stakes in Apple (NASDAQ:AAPL) can live on the income much less than a $1,000,000 portfolio can generate. With 1,000 shares of AAPL, you can produce the equivalent of the stock's annual dividend payout every two months using covered calls and cash-secured puts.

My goal, over the next ten years, is to position my 8-year old daughter to achieve that $1,000,000 milestone sooner rather than later. Thus far, we're off to a rousing start:


(Click to enlarge)

That's a snapshot from the custodial account I opened for my daughter just last month. It's all about dollar cost averaging and dividend reinvestment.

Viacom (NASDAQ:VIAB) announced earnings this morning. Despite SpongeBob and Nickelodeon-related stumbles, the company crushed earnings estimates. While that particular network might be in "crisis," according to The Wall Street Journal, Viacom, the larger company, clearly is not.

Viacom's beat underscores two of my larger investment themes and makes the Netflix (NASDAQ:NFLX) bear case stronger.

Viacom owns and controls premium content. Plus, it is massive enough where one area of its business can struggle, yet the whole operation outperforms. It's a bit like Disney (NYSE:DIS); its size and scale allows one segment or area to hedge against another.

On the company's conference call, CEO Philippe Dauman noted that Viacom might take exclusive rights to Epix programming away from Netflix before long. This helps illustrate the fragility of Netflix's meager existence.

Furthermore, I agree with Seeking Alpha's Dana Blankenhorn that Viacom is an attractive takeover target. If regulators would allow such a deal to go through, I could see a company I like even more, Time Warner (NYSE:TWX), scooping them up. Viacom fits nicely into the Time Warner stable and only enhances the company's current position of strength. Plus, I would take TWX CEO Jeff Bewkes running the show over Dauman and Viacom Founder and Chairman Sumner Redstone any day of the week.

From a regional standpoint, Madison Square Garden (NASDAQ:MSG) enjoys a similar type of situation. I also consider it attractive to a company like Time Warner, assuming it has expansion on the brain.

And, in a completely different sector, Kraft (KFT) runs the same type of ubiquitous offense. We're sticking with these three stocks for the long haul in my 8-year old's portfolio.

If, over the next ten years, I am able to contribute an average of $250 per month into my daughter's custodial account, at an annual rate of return of just 3%, she will have over $35,000 by the time she turns 18.

At that rate, it would take 123 years to for her to accumulate $1,000,000. However, if she kept up the same pace for 40 years, she would have one million in 90 years. Up the average monthly investment amount to $500 and the time to a million decreases to 67 years. Pop the rate of return to just 5% and we're looking at just 47 years to $1 million. At that point, she'll be 55 years of age.

At that moment in time, I will be 84 years old. Here's hoping she'll take me out for dinner or maybe fix up some macaroni and cheese as we settle in for a night of New York Rangers' hockey on Time Warner's MSG (!)

Source: Setting Up An 8-Year Old To Be A Millionaire