From Nasdaq: 2024-09-19 04:44:00

The S&P 500 is a top performer, outshining other asset classes and large-cap funds over the last decade. Investing $400 monthly in an S&P 500 index fund could grow to $789,500 in 30 years, providing $16,800 in annual passive income. This strategy can be enhanced by reinvesting in a high dividend yield index fund.

Invest in Vanguard S&P 500 ETF by investing $400 monthly to benefit from low-cost exposure to top U.S. companies like Apple, Microsoft, and Nvidia. The fund has returned 10% annually over the last three decades. Consider taxes when selling to reinvest in Vanguard High Dividend Yield ETF for $16,800 in annual dividend income.

The Vanguard High Dividend Yield ETF offers exposure to value stocks with top holdings like Broadcom and JPMorgan Chase. The fund has a dividend yield of 2.63%, generating $16,800 in annual dividend income from a $639,500 investment. Consider reinvesting and benefit from potential growth.

Most individuals should aim to save more than $400 per month for retirement. With the median worker earning $69,240 annually, saving $13,848 yearly or $1,154 per month is recommended. Investing in index funds like the S&P 500 can lead to a substantial nest egg for retirement.

Consider investing in stocks recommended by the Motley Fool Stock Advisor analyst team, which has a track record of identifying top-performing stocks like Nvidia. Explore opportunities beyond Vanguard S&P 500 ETF to potentially maximize returns and build a successful portfolio.

Disclaimer: The author’s views expressed here may not align with Nasdaq, Inc. The mentioned companies and ETFs, like Amazon, Apple, and Vanguard, have been recommended by the Motley Fool for investment opportunities in high-performing stocks. Always consider individual financial goals and risk tolerance before investing.



Read more at Nasdaq: 2 Vanguard Index Funds Could Turn $400 Per Month Into $16,800 in Annual Dividend Income by Retirement