From Nasdaq: 2025-06-29 12:05:00

The average American believes they need $1.26 million for a comfortable retirement, but starting with just $10 per day can lead to explosive growth over time. Investing in an S&P 500 index fund with $10 on weekdays could reach $1 million in about 38 years, assuming 10% annual gains and no taxes within an IRA. Remember, $1 million in the future won’t have the same buying power as today due to inflation, but compounding growth can significantly boost savings over time. Consider starting early and consistently to maximize retirement savings potential.

While $1 million is a substantial amount, it may not provide a lavish retirement. Saving consistently and investing wisely are key to outgrowing inflation and ensuring a secure financial future. Even small contributions can make a meaningful difference, especially if invested in the stock market for the long term. Discount online brokers like Schwab and Fidelity offer low minimum purchase requirements, making it accessible for anyone to start investing in index funds now for retirement.

Many Americans are behind on retirement savings, but maximizing Social Security benefits and utilizing little-known strategies could lead to a significant boost in retirement income. Learning how to make the most of Social Security benefits can provide peace of mind and confidence in retirement. Charles Schwab is an advertising partner of Motley Fool Money, offering opportunities to enhance retirement savings strategies.



Read more at Nasdaq: Can You Retire a Millionaire by Investing Just $10 a Day? The Answer Is Yes — Here’s the Math.