How $100 a Month Could Grow Into a 6-Figure Portfolio, According to History
The power of long-term compounding can turn even small monthly investments into significant sums of money.
Overview
Investing $100 per month doesn't seem like enough to build real wealth. Even after 30 years, the $36,000 total you'd have invested by that point probably wouldn't even last 12 months.
But that leaves out the most important part of the long-term investing equation: compounding growth.
Details
Historically, the S&P 500 (SNPINDEX: ^GSPC) has generated an average annual return of around 10%. There's no guarantee that investors will get that same return going forward, but it does demonstrate how a portfolio can really grow when even modest monthly investments are consistently made over time.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.