How to Make a Million Dollars?

Proverbs 13:11 Wealth gained hastily will dwindle, but whoever gathers little by little will increase it.

Discover the power of smart investing! Over the past decade, a popular Total Market Index Fund has delivered an impressive average annualized return of 10.77%. Imagine this: a $10,000 investment ten years ago, coupled with just $1,200 annually ($100/month), has grown into a substantial $48,618 today, thanks to the magic of compound interest. Your initial investment? A mere $22,000 over the entire decade—now that’s a savvy return on investment.

But wait, there’s more! This calculation doesn’t even account for the dividends that certain index funds throw into the mix, adding an extra layer of financial sweetness to your portfolio.

Dreaming of that million-dollar milestone? Here’s the game plan: Invest $12,000 annually ($1,000/month) for the next 22 years, and voila, you’ll hit that coveted $1,040,917.29 figure (using this 10.77% return example). It’s all about consistency, discipline, and patience—the essential elements of playing the long game. Remember, the road to becoming a millionaire isn’t a sprint; it’s a marathon. So buckle up, stay disciplined, and watch your wealth grow steadily over time. It’s all within your reach with a Total Market Index Fund.

What is a Total Market Index Fund? According to Investopedia: “A total stock market index fund is an investment vehicle that contains a basket of stocks within a mutual fund or exchange traded fund (ETF) that tracks an equity index.”

NerdWallet: How to Invest in Index Funds

-HC

Disclaimer: Investing in the stock market carries risks, and past performance is not indicative of future results. It’s always advisable to consult with a financial advisor or do thorough research before making any investment decisions.