3 Ways to Grow $100,000 Into $1 Million for Retirement Savings

The primary reason most people invest is to grow their money for retirement. If you have $100,000 to invest and time on your side, you can likely turn those six figures into a $1 million nest egg that will surely put you closer to your financial retirement goals. There are no foolproof methods, but there are ones that have stood the test of time. Here are three ways you can do it.

There's nothing that works magic in investing quite like compounding. It's a reason Albert Einstein is credited with calling it the "eighth wonder of the world." You always want to make money on your investments, but you should also want to reinvest those returns so they themselves also earns a future return -- and that's what compounding is. Thanks to compounding, $100,000 can turn into $1 million with little to no work, just time.

Let's imagine you make a one-time $100,000 investment into an S&P 500 index fund, which historically returns 10% annually in the long run. Of course, year-to-year returns will vary, but if you have time on your side, you can count on it returning around that on average. If you made that one-time investment and let it sit for 25 years with those returns, it would have accumulated to over $1.08 million.

Source Fool.com