This Index Fund Could Turn $25,000 Into $20,635,655
The best investments are sometimes the simplest.
Overview
How do you turn $25,000 into $20,635,655? While investors are always looking for a shortcut, the answer is a combination of two factors: Time and my favorite index fund of all time.
If you put $25,000 into an index fund tracking the S&P 500 index (SNPINDEX: ^GSPC) in 1960, you would have north of $20 million today without ever investing another cent apart from reinvesting your dividends.
Details
That's it. This strategy involved no trading in and out of individual stocks. It doesn't rely on market timing or predicting the next economic cycle. It doesn't even require forecasting inflation rates, political parties, or geopolitical events. All that's needed is time, and thus, plenty of patience.
Source
Originally published at www.fool.com.