If you look at the total average annual return of the S&P 500 (sense the 1930s), it has averaged a return of about 9%. Assuming this average remains about the same for 40 years, investing $250 a month into an S&P 500 ETF your original investment of $120,000 will grow to become $1,104,875. On top of that dividend payments each quarter for every share of the ETF you own. I started buying SPY the beginning of 2019 and hope I can stay disciplined enough to continue always investing $250 a month minimum into it. Being 21 years old, this will more than set me up for atleast a decent retirement life. Dont get me wrong I am always looking for ways to make money Preferably much quicker than this too but this small investment every month is a low risk comforting background investment I have to remind me that even if I fail at everything thing else I will not end up old and broke having to worry about not being able to ever retire.
Ofcourse I'm well aware that this average return of 9% could change but even if it went down to 3%, you will have much more than you would have just putting that money away into a bank account.
I'm interested to hear what thoughts you guys have on this. Is this as good of a plan as I think it is? It almost seems too good to be true and want to make sure I'm not missing anything here. Thanks!
Submitted May 21, 2019 at 01:58AM by nick2938 http://bit.ly/2YFy8nr
