swimming in moneyThe S&P 500 is a market capitalization-weighted index of the 500 leading publicly traded companies in the U.S.

The index is operated by Standard & Poor’s Dow Jones Indices that is a division of the S&P Global.

It’s name and present size started in 1957. However…

The S&P dates back to the 1920s when it was a composite index tracking 90 stocks in 1926.

The average annualized return since its inception in 1928 through Dec. 31, 2023, is 9.90%.

The more important average annualized return since adopting 500 stocks into the index in 1957 through Dec. 31, 2023, is 10.26%.

So how do you turn $1,000 into into $22,915.26?

Start by investing $1,000 into the S&P 500 tomorrow.

I use Vanguard and the ticker is VOO. A Vanguard account is free to open and the trades are free so it’s not going to cost you anything to open this account.

THEN…contribute $100 at the end of each month AND set your account to automatically re-invest the dividends.

In ten years, assuming the S&P average stays around the same, which feels like a good bet, you’re have $22,915.26!

IF you’re saying to yourself, “Brandon I have $5,000 I can start with!”

Great!

Put that in a S&P Index tomorrow, contribute just $100/month and you’ll have $33,538.08!

IF you can afford to put in even more than $100/month. Well, you’ll make a LOT more.

THEN…imagine what happens in 20 years, 25 years, 30 years!

If you’re new to the newsletter you should read my past article on the best investment advice I ever received which explains my investing philosophy and why it’s so boring compared to watching CNBC. You can also listen to it if that’s easier in a 9 min episode.

Disclaimer: I am NOT a financial advisor. My results may differ from yours because of timing, amounts or other factors. You should do your own research and/or consult a professional before you make any investing decision mentioned in this newsletter. I relied on Investopia for the stats on the S&P 500 for this article.