Could Investing $300 a Month in VOO Make You a Millionaire? Here's the Math.
You don't have to pick stocks or beat the market to be a millionaire.
Overview
One of the most frequently recommended ways for people to invest in the stock market is to buy the S&P 500 index. With a low-cost S&P 500 index fund, you can own all 500 of the largest publicly traded companies in America. Just buying these 500 major names could be enough to make you a millionaire. That's because the S&P 500 has delivered strong long-term returns.
In the 98 years since 1928, the S&P 500 has delivered annualized returns of about 10%. Keep in mind, that number includes some massive economic downturns during worldwide catastrophes like the Great Depression and World War II. Even with the dot-com bubble of 1999-2000, the global financial crisis of 2008, the pandemic of 2020, and other serious crises and short-term sell-offs, the S&P 500 has been one of the best places for people to put their money for almost 100 years.
Details
One of the best ways to buy the S&P 500 is via a popular Vanguard exchange-traded fund (ETF). The Vanguard S&P 500 ETF (NYSEMKT: VOO) is so well-known that it's often referred to by its ticker (VOO). This fund has a shorthand investment strategy named after it called "VOO and chill."
Source
Originally published at www.fool.com.