Aiming for $1 Million by Retirement? Here's How Much to Invest Each Month Based on Age
People in their 30s may need to invest less than $500 per month to be on track to retire with $1 million.
Overview
A million-dollar portfolio can be a great goal for retirement. At such a large amount, an income-generating investment that yields 5% could bring in $50,000 per year. Retirees can also pull money out periodically, depending on their day-to-day needs.
The struggle for many investors inevitably becomes how to get to $1 million. While there are many tempting growth stocks to invest in that could generate significant long-term returns, there is going to be risk when it comes to investing in individual stocks; a lot can happen to a business, especially over a long time frame.
Details
A safer and more diversified approach is to simply track the market. A popular exchange-traded fund (ETF) is the Vanguard S&P 500 ETF (NYSEMKT:VOO), which tracks the leading stocks on the U.S. markets via the S&P 500 index. Historically, it's done tremendously well. Investing periodically can be a steady way to grow a portfolio, without taking on much risk.
Source
Originally published at www.fool.com.