Want to Get Your Portfolio to At Least $1 Million by Retirement? Here's How Much You Should Invest Today.
Retiring with $1 million or more can be an excellent goal to aim for. You could slowly withdraw from it each month to help pay for bills, or you could put it into an exchange-traded fund (ETF) that pays you a dividend on a regular basis. This can help preserve your capital while giving you a consistent stream of cash flow. And when it comes to dividends, the bigger your balance, the more recurring income you'll have.But just how much should you plan to invest today if you want to retire with $1 million, and what type of investment should you consider? Below, I'll aim to answer those questions and give you a realistic expectation of how much you may need to invest in the stock market right now to achieve your goals.The S&P 500 index (SNPINDEX: ^GSPC) is a collection of some of the largest and safest stocks you can invest in. Over the long term, the index has grown by an average of 10% per year when you include dividends. Tracking it with an ETF can enable you to generate similar returns and benefit from the stock market's long-term success. After all, if the stock market is doing well, it's likely because top-performing stocks in the S&P 500 are also performing well.Continue reading
Retiring with $1 million or more can be an excellent goal to aim for. You could slowly withdraw from it each month to help pay for bills, or you could put it into an exchange-traded fund (ETF) that pays you a dividend on a regular basis. This can help preserve your capital while giving you a consistent stream of cash flow. And when it comes to dividends, the bigger your balance, the more recurring income you'll have.
But just how much should you plan to invest today if you want to retire with $1 million, and what type of investment should you consider? Below, I'll aim to answer those questions and give you a realistic expectation of how much you may need to invest in the stock market right now to achieve your goals.
The S&P 500 index (SNPINDEX: ^GSPC) is a collection of some of the largest and safest stocks you can invest in. Over the long term, the index has grown by an average of 10% per year when you include dividends. Tracking it with an ETF can enable you to generate similar returns and benefit from the stock market's long-term success. After all, if the stock market is doing well, it's likely because top-performing stocks in the S&P 500 are also performing well.
