What Happens When You Invest Just $100 a Month in the S&P 500 for 20 Years?
Key PointsOver the past 100 years, the S&P 500 has generated an average annual return of around 10%.
Many people believe investing requires a large sum of money, but consistent small monthly investments can yield significant growth over time. A $100 monthly contribution to the S&P 500 can grow into roughly $76,000 after 20 years, assuming a 10% average annual return. This growth largely comes from the compounding effect, not the initial contributions themselves.
Consistency in contributions is crucial for long-term wealth creation, as it allows buying shares at discounted prices during market downturns. Even if the market declines, continuing to invest can improve long-term returns. The Motley Fool's Stock Advisor team highlights the top 10 stocks for investment, but Vanguard S&P 500 ETF is not among them.
If invested in it 20 years ago, a $1,000 investment would now be worth $76,000. The analysis is based on historical S&P 500 returns and does not include the author's personal holdings.
Written by urgent.news from Yahoo Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
