1 Vanguard Index Fund Could Turn $450 Per Month Into an $839,300 Portfolio That Pays $13,900 in Annual Dividend Income
The median annual income for full-time workers aged 25 to 34 was $59,000 in the fourth quarter, according to the Labor Department. After-tax earnings would total about $45,000 even in the worst-case scenario. Financial planners typically recommend saving 20% of after-tax earnings for retirement, meaning the median young adult should save about $9,000 per year or $750 per month.Invested prudently, even a percentage of that total could grow into a sizable portfolio over time. For instance, $450 invested monthly in the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) would be worth approximately $839,300 after three decades. And the portfolio would initially generate about $13,900 per year in dividends.However, the underlying investment would continue to grow, so the dividend payout could be even larger by retirement after a few more years. Here are the important details.Continue reading
The median annual income for full-time workers aged 25 to 34 was $59,000 in the fourth quarter, according to the Labor Department. After-tax earnings would total about $45,000 even in the worst-case scenario. Financial planners typically recommend saving 20% of after-tax earnings for retirement, meaning the median young adult should save about $9,000 per year or $750 per month.
Invested prudently, even a percentage of that total could grow into a sizable portfolio over time. For instance, $450 invested monthly in the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) would be worth approximately $839,300 after three decades. And the portfolio would initially generate about $13,900 per year in dividends.
However, the underlying investment would continue to grow, so the dividend payout could be even larger by retirement after a few more years. Here are the important details.
