Invest Early and Let Time Work Its Magic to Grow Your Portfolio to $1 Million
• To grow your portfolio to $1 million, invest early and consistently. A $13,719 investment at age 20 can grow to $1 million in 45 years with a 10% annual return.
• Consider passively managed ETFs like S&P 500 ETF (SPY) to easily invest in the broader market rather than picking individual stocks.
• For a more aggressive approach, Vanguard Growth ETF (VUG) focuses on growth stocks with higher historical returns than SPY.
• Over 10 years, VUG returned 230% vs SPY's 154%, though SPY outperformed the last 3 years.
• ETFs simplify investing by providing built-in diversification across many stocks instead of having to research and track many positions.