1 Vanguard Index Fund Could Turn $500 per Month Into a $911,700 Portfolio That Pays $16,900 in Annual Dividend Income
The median annual earnings for full-time workers ages 25 to 34 was $58,500 during the first quarter, according to the Labor Department. So, after-tax earnings would be about $44,000 in the worst-case scenario. Financial planners generally recommend saving 20% of after-tax earnings for retirement.That means the median worker ages 25 to 34 should be saving approximately $8,800 per year, which is about $730 per month. Even a percentage of that figure invested wisely could grow into a sizable sum by retirement.For instance, $500 added monthly to the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) would be worth $911,700 after three decades, and the portfolio would initially pay about $16,900 per year in dividend income. Read on to learn more.Continue reading
The median annual earnings for full-time workers ages 25 to 34 was $58,500 during the first quarter, according to the Labor Department. So, after-tax earnings would be about $44,000 in the worst-case scenario. Financial planners generally recommend saving 20% of after-tax earnings for retirement.
That means the median worker ages 25 to 34 should be saving approximately $8,800 per year, which is about $730 per month. Even a percentage of that figure invested wisely could grow into a sizable sum by retirement.
For instance, $500 added monthly to the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) would be worth $911,700 after three decades, and the portfolio would initially pay about $16,900 per year in dividend income. Read on to learn more.
