Could Investing $400 per Month in VTI Make You a Millionaire? Here's the Math.
This low-cost index fund could deliver millionaire-making returns.
The Vanguard Morningstar Total Stock Market ETF, known as VTI, is a popular investment option. It actually holds over 3,500 different stocks, giving investors access to a diverse mix of U.S. companies, from small-cap to mid-cap stocks and value stocks. VTI provides a broader exposure to the market compared to just the S&P 500.
To determine if consistently investing $400 per month in VTI could turn one into a millionaire, let's examine how this investment might grow over time. Assuming a steady average annual return of 9.38%, which has been VTI's historical average over 25 years, the investment would grow to approximately $1.028 million after 34 years.
If we look at even stronger past returns, like the 10.95% annualized return VTI experienced over the past five years, the investment could potentially reach $1.05 million after 30 years. And with a more optimistic 14.87% annual return over the past ten years, one could potentially become a millionaire in just 25 years with a $1,000,709 portfolio.
While these returns are historical averages and not guarantees, they illustrate the potential power of long-term investing in a well-diversified fund like VTI. The Motley Fool offers additional resources for those looking to improve their investment strategies.
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