The S&P 500 or simply the S&P is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States. The S&P 500 to me is the easiest way to accomplish great steps towards becoming a millionaire. There is no gimmick here. I’m going to show you facts and affordable ways to accomplish this. I’m going to use real numbers nothing imaginary.
First of all the S&P 500 bring back high returns, I’m even tempted to say the highest. In 3 years you’re looking at return around 26.98 percent. I’m not even going to round anything up just not to confuse anyone. In 5 years around 57.26 percent
And the 10 years return is about 176.4 percent. In simple math for whatever you invest in a period of 10 years that amount can easily triple.
Enough about What could be. Remember base on your lifestyle now you can change your tommorow for the better. Money is pretty tight and trust me it will get thighter overtime. One thing we don’t pay attention to is that whenever we get a raise or a promotion our spending/bills gets it too they increase and you have no idea where your money is going.
Well this little scenario should be a wake up call for you I’m going to keep it easy and simple. If you are able to make $2500 monthly, yes you can be a millionaire by only paying yourself $150 biweekly. Which is about $300 a month. Now every month invest that $300 in the S&P 500 index fund
In 12 months your total investments will be $3600 Which is 36,000 in 10 years.
This year alone you would’ve had a return of $628.56 since the S&P 500 brought back a return of 17.46 percent. But let’s only use the average of 13 percent of return. According to the above scenario with $300 a month in 12 months that’s $3600 let’s do it for 10 years since we you’ll be working so it’s good to pay yourself as you pay every other bills.$3600 multiply by 10 equal to $36,000 don’t get excited yet.
Now let’s say after 10 years you decided not to pay yourself anymore. That $36,000 in the S&P 500 index would bring you back average yearly $4680 with each amount the year after going to be higher because of compound interest at 13 percent return. Nice, right? Before you answer that question.
Let’s say you leave that money there until you reach retirement age you’ll have way over $1.9M by only paying yourself 12 percent of your monthly income if you are making $2500 monthly. That scenario is for people under 20 years of age the older you are the more you would need to invest to accomplish that goal.
• Investments involve risk of loss and are not FDIC insured.This article is for educational purposes only. Other indexes may be more appropriate for your investment approach.