Want $1 Million in Retirement? 9 Simple Index Funds to Buy and Hold for Decades -- Including the Vanguard S&P 500 ETF

Core Insights - The article emphasizes the importance of effective investment strategies for retirement savings, particularly aiming for a target of $1 million, while balancing risk appropriately [1][5]. Investment Strategies - It is recommended to consider investing in index funds for long-term savings, as they simplify the investment process by eliminating the need for constant stock analysis and trading decisions [2][5]. - Index funds can help investors target growth, income, or both, and diversifying across several funds is advised [5]. Growth Potential - Historical data indicates that the stock market has averaged annual returns of nearly 10% over several decades, with potential variations during individual investment periods [4]. - A table illustrates how monthly investments of $1,000 can grow over time at different annual growth rates (8%, 10%, and 12%), showing significant potential for wealth accumulation over 40 years [4]. Index Fund Recommendations - The article lists nine promising index funds in ETF form, highlighting their recent dividend yields and average annual returns over 5, 10, and 15 years [6][7]. - Notable ETFs include: - Vanguard S&P 500 ETF (VOO) with a 5-year average return of 14.91% and a recent dividend yield of 1.12% - Vanguard Total Stock Market ETF (VTI) with a 5-year average return of 13.69% and a recent dividend yield of 1.11% - VanEck Semiconductor ETF (SMH) with a 5-year average return of 28.96% and a recent dividend yield of 0.30% [7].