$300 a Month in These 3 Stocks Could Make You a Millionaire by Retirement

One million dollars. This amount seems like a lot, but it has lost a bit of its weight due to inflation. Still, it's a goal nearly every investor has. To achieve this goal through the stock market, investors can purchase index funds, individual stocks, or a combination of the two. Because index funds track indexes like the S&P 500 or Nasdaq-100, they are widely diversified and move in smaller increments. On the other hand, individual stocks have more significant potential but also more risk. Using a combination of these two methods can help investors meet their goal of becoming a millionaire by retirement.

If the right stocks are chosen, a $300 a month contribution split among three stocks can be the ticket to becoming a millionaire by retirement. Of course, $300 is entirely arbitrary, and investors can find the future value of constant cash flows with the following formula:

Image source: Author. F is the future value of an investment, A is an equal cash flow, i is the interest rate, and N is the number of interest periods.

Source Fool.com