How Regular $300 Monthly Investments Lead to $1 Million by Retirement with Vanguard Growth Index Fund
The Power of Regular Investments:
Investing every month is a great habit to get into. There are many ways to try and cut costs and save money. From canceling unused subscriptions to consolidating debts to spending less money on eating out, cost-cutting moves can potentially give you some room to put money aside and invest. And there's a big incentive to do so: It can help you become a millionaire.
Compounding Growth with Vanguard ETF:
If you can shave off $10 per day in costs, or $300 per month, and regularly invest that into a growth-focused exchange-traded fund (ETF), you can eventually have a portfolio worth more than $1 million. A growth-focused fund like the Vanguard Growth Index Fund can provide higher long-term returns through compounding and investing in growth stocks.
Realizing $1 Million Retirement Goal:
- Start investing $300/month in Vanguard Growth ETF
- Expect gains of 14% annually on average
- Portfolio value growth over the years:
- 5 years: $26,160.22
- 10 years: $78,627.41
- 15 years: $183,856.13
- 20 years: $394,903.88
- 25 years: $818,183.31
- 26-30 years: Reach $1 million
It's a fairly simple yet effective strategy to build wealth over time by consistently investing in a diversified growth fund like the Vanguard Growth Index Fund and leveraging the power of compounding returns.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.