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Here's How Investing $300 Per Month in This Unstoppable Vanguard ETF Can Create $1 Million by Retirement
The Motley Foolยท 2025-08-02 09:22
Investment Strategy - Continual investment in growth stocks can lead to significant gains over time [1] - Aiming to create a $1 million portfolio by retirement can provide financial freedom and enhance quality of life [2] - Investing $300 per month can potentially build a portfolio worth at least $1 million over time [3] Investment Approach - Regular monthly investments help establish a habit and simplify the investment process [5] - Diversification is crucial; investing in an ETF rather than a single stock can mitigate risks while still benefiting from market growth [6] Recommended Investment Vehicle - The Vanguard S&P 500 Growth Index Fund ETF (VOOG) is highlighted as a strong option, with a low expense ratio of 0.07% and a historical total return of 120% over five years [7] Growth Projections - Assuming a 10% annual growth rate, it would take approximately 34 years of $300 monthly investments to reach $1 million [11] - Investment growth projections over time show significant increases, with values reaching $1,148,483 after 35 years [14] Accessibility of Investment - Individuals of any age can start investing; increasing monthly contributions or receiving lump sums can accelerate portfolio growth [12] - Investing in the stock market is generally more beneficial in the long term compared to saving in a bank account [13]