Want to Get Your Portfolio to $1 Million in 30 Years? Here's How Much You Should Aim to Invest in the S&P 500 Each Year.

Core Insights - Building a portfolio worth $1 million is achievable through periodic investments rather than a large initial sum, leveraging the power of compounding [1] - Investing in the S&P 500 index can be a reliable method for long-term wealth growth, with an average annual return of 10% [4][8] Investment Strategy - The S&P 500 has historically provided a return that allows investments to double approximately every seven years, making it an attractive option for investors [4][8] - Exchange-traded funds (ETFs) like the SPDR S&P 500 ETF (NYSEMKT: SPY) offer a low-cost way to track the S&P 500, with an expense ratio of just 0.09% [5] Future Considerations - While the S&P 500 has shown a consistent growth rate, future returns are uncertain, and estimating the growth rate is challenging [6][7] - The growth rate significantly impacts long-term gains, making it difficult to determine the exact annual investment needed to reach a $1 million portfolio [7]