How Long Does It Take to Turn $300 per Month Into $1 Million in the Stock Market? Here's What History Says.
Key PointsGrowing your net worth to $1 million or more can seem like an impossible task.
Becoming a millionaire does not require starting with a substantial sum of money. Even investing just $300 a month can help achieve that goal. However, it takes a long time and requires consistent monthly investments, regardless of market conditions, to reach $1 million. Throughout history, the S&P 500 has delivered an average annual return of about 10%, with dividends reinvested.
This serves as a reasonable assumption for future U.S. stock returns. For example, investing $300 monthly into the Vanguard S&P 500 ETF would result in investing a total of $122,400 over 34 years. Consequently, about 88% of the account balance would come from capital growth on the investment, thanks to long-term compounding returns.
The process to accomplish this does not have to be complex. Simply invest $300 a month into the Vanguard S&P 500 ETF, and continue doing so for as long as possible. Additionally, consider increasing your monthly investment over time or incorporating pay raises and bonuses into your brokerage account. With enough time, what seems impossible can become quite achievable. For more investment advice, consider The Motley Fool's premium services.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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