Here's How You Can Turn $40,000 Into $1 Million by Retirement

Investment Strategy - Investing a large lump sum for the long term can effectively grow a portfolio to over $1 million, especially with more years left before withdrawal [1] - The longer the investment horizon, the less needs to be invested today to achieve significant growth [2] Technology Sector - Tech stocks are seen as captivating long-term investments due to their involvement in cutting-edge technologies, which can disrupt industries and provide substantial growth opportunities [4] - Picking individual tech stocks can be challenging, making exchange-traded funds (ETFs) like the Vanguard Information Technology ETF (VGT) an ideal option for long-term investment [5] Vanguard Information Technology ETF - The Vanguard Information Technology ETF has a low expense ratio of 0.09% and provides exposure to hundreds of tech stocks, including semiconductors, application software, and hardware [5] - The ETF has significant exposure to major tech companies like Nvidia, Apple, and Microsoft, which together account for 45% of its total weight [6] Performance Metrics - Over the past decade, the Vanguard Technology ETF has outperformed the market with total returns of around 630%, compared to 285% for the S&P 500, averaging a compounded annual growth rate of 22% [7] - The potential for massive returns makes tech stocks, particularly through ETFs like Vanguard, attractive for long-term investments [8]