1 Brilliant Index Fund Could Turn $450 Per Month Into $939,100 (and Create $17,100 in Annual Dividend Income) by Retirement
The S&P 500 (SNPINDEX: ^GSPC) has always moved higher over long periods of time, and the index has consistently outperformed investment-grade bonds, real estate, and gold. That makes an S&P 500 index fund a very compelling investment option when saving for retirement.
Famed investor Warren Buffett himself recommends that strategy. An S&P 500 index fund is essentially a basket of U.S. stocks, and Buffett believes that basket is "virtually certain to be worth far more in the years ahead."
The Vanguard S&P 500 ETF (NYSEMKT: VOO) in particular could turn $450 per month into $939,100 over three decades. That portfolio could then generate $17,100 in annual dividend income in retirement. Here's how.
Source Fool.com
