An Extra $150 Invested Monthly In This Mutual Fund Could Increase Your Retirement Savings By $350,000
Looking for ways to ramp up your retirement savings plan? Here's an easy one to consider. Carve out an extra $150 from your budget to increase your 401(k) contributions. Then, invest the money in a solid mutual fund that gives you exposure to the largest publicly traded companies. Stick with that program for long enough and it could add $350,000 or more to your nest egg balance at retirement.
The most popular mutual fund among 401(k) investors today is the Vanguard Institutional Index Fund (NASDAQMUTFUND: VINIX), according to a Brightscope report compiled for business publisher Kiplinger. The fund seeks to track the performance of the S&P 500 index, a basket of the largest 500 or so public companies in the U.S., including Apple, Microsoft, Amazon, Alphabet, Facebook, and Berkshire Hathaway. Over the last 10 years, that basket of companies has grown, on average, 13.74% per year. Over the same time period, the Vanguard fund has produced annual returns of 13.71% for its shareholders.
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Source Fool.com
