Have you ever wondered what would happen if you invested $100 per month in the S&P 500 index 10 years ago? Perhaps, or perhaps not...
Let's assume that you started investing $100 per month in the S&P 500 index from March 2013 to March 2014, and continued to do so for the next 10 years. That means you would have invested a total of $12,000 over the period.
Now, what would be the result of this investment after 10 years?
According to historical data, the S&P 500 has had an average annualized return of approximately 16% over the past 10 years (as of September 2021). This means that if you invested $100 per month for 10 years and earned a 16% annual return, your investment would be worth approximately $29,995 today. That is more than doubling your money!
Of course, this is just an estimate, and the actual return may vary depending on the timing of the monthly contributions and market conditions. The S&P 500 has gone through several ups and downs over the past decade, including the COVID-19 pandemic, which caused a significant market drop in 2020.
However, the long-term trend of the stock market has been upward, and investing in an index fund like the S&P 500 can be a good strategy for long-term wealth building. By investing consistently over time, you can benefit from compound interest and the power of compounding.
So, if you haven't started investing yet, why not start now? With as little as $100 per month, you can start building your wealth and securing your financial future. And who knows, maybe in 10 years, you'll be pleasantly surprised by how much your investment has grown!
Remember, investing is not just about making money. It's also about learning, growing, and having fun along the way. So, don't be afraid to take calculated risks, and enjoy the ride!
What do you think of this investment strategy? Let me know in the comments below!
You can invest in just about any low cost index fund that tracks the S&P 500 or the total US Stock Market (such as VTI, The Vanguard Total Stock Market Fund)
This is where I choose to invest my money:
