Your one in a million you are3/17/2024 ![]() There are many examples of successful long-term active strategies. Exchange-traded funds (ETFs) that focus on economic megatrends also have a chance to deliver big returns by capitalizing on the fastest-growing portions of the global economy. Some people have successfully picked stocks and outperformed the market over the long term. If you only have 10 years, then you'll need to start with about $465,000 to hit $1 million. If you have $100,000 in your retirement account today, it will take 30 years of 8% compounding annual returns to surpass $1 million. We can use this information to figure out how the S&P 500 can make you a millionaire retiree. Historically, the market's average rate of return is just under 10%. Even during the worst possible stretches, the index was never negative over any 15-year period. However, history has shown us the S&P 500 rises as the global economy grows long term. The index offers no guarantees - there are plenty of significant, temporary declines as you can see above. This chart should look familiar for most investors: It's the S&P 500's performance over the past 30 years. Keep the following in mind as you plan the investment strategy for your 401(k), IRA, or other retirement account. ![]() Not everyone will reach millionaire status with the S&P 500, but the index still offers a pathway to a seven-figure nest egg. Index funds aren't too exciting, but they deliver reliable long-term results.
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