Investing in This ETF Now Can Make You a Retired Millionaire | Smart Change: Personal Finance
Saving for retirement is tough, but you don’t need to be a stock market expert to make a lot of money. You also don’t need to be rich to generate wealth through investing – you just need the right strategy.
Not all investments are created equal, and some options are more powerful than others. If you are looking for a low-maintenance investment that can make a lot of money over time, here is one Exchange Traded Fund (ETF) that stands out: Standard & Poor’s 500 ETF.
S&P 500 ETF: What you need to know
An S&P 500 ETF is a fund that includes all stocks within the same S&P 500 index, and aims to match the performance of the index over time.
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This ETF is ideal for those who want to invest but don’t want to spend countless hours researching individual companies and stocks. With stocks within the S&P 500 being from some of the largest and strongest companies in the United States, this ETF is a strength and a relatively safe investment.
The S&P 500 itself has survived dozens of crashes, corrections, bear markets, and recessions over the years. Despite all the volatility, it has yielded positive average returns over the long term.
This makes this type of investment particularly smart for those looking to reduce their risk during periods of economic uncertainty. No matter what the future may hold, the S&P 500 is almost certain to recover – and so will your investments.
How much can you earn?
While the S&P 500 is one of the safest investments, it is also possible to make a lot of money. With the right strategy, you could potentially earn over a million dollars by the time you retire.
Historically, the S&P 500 has generated an average annual return of close to 10% over time. In other words, all the ups and downs you experience from year to year have averaged about 10% per year over the long term.
Suppose, for example, that you want to accumulate at least $1 million by retirement age. Assuming you earn a 10% average annual return, here’s how much you need to invest roughly every month depending on how many years you have left to save.
|The number of years||Amount invested per month||Total savings|
|40||$ 200||$1.062 million|
|20||1500 dollars||$1.031 million|
The more time you have to let your money grow, the less you will need to invest each month to reach your goal. If you haven’t already started investing, now is the time to get started.
What if you’re retarded?
If you don’t have contracts to build your own retirement fund, that’s fine. If you can change it, investing more per month can help you save more money in a shorter period of time.
No matter how much you can afford to invest or how many years you have until retirement, it’s wise to start saving now. Even if you fall behind, hundreds of thousands of dollars can still be saved with an S&P 500 ETF.
It’s never too late to start investing, and S&P 500 ETFs are a smart choice for many people. By investing as much as you can and giving your money as much time as possible to grow, you will be well on your way to retiring from a millionaire.
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