Is the S&P 500 All You Need to Retire a Millionaire?

Index fund investing is popular for a reason, but can it really deliver for investors with lofty retirement goals? The answer isn't the same for everyone, but there are some people who can absolutely reach millionaire status just by investing in the S&P 500. Unfortunately, there are a few other important steps you'll have to take to get there.

Obviously, the S&P 500's ability to make millionaires depends on its future performance. We can't know for sure where the market index is going, but we can lean on history to make an informed guess.

The S&P 500 has delivered a 10% average rate of return over the long-term. When we factor in fees, taxes, trading costs, and other expenses, that nets out to 7-8% for most people. When most people think about average market returns, those are the commonly cited numbers that they expect to achieve. At an 8% rate of return, $100,000 would turn into $1,000,000 after 30 years. If you have 30 years and $100,000, then there's a good chance that the S&P 500 can make you a millionaire retiree.

Source Fool.com