Is the S&P 500 All You Need to Retire a Millionaire?
It's no surprise that exchange-traded funds (ETFs) have become so popular over the past decade. They offer investors the ability to invest in wide swaths of the market in one portfolio that can be traded like an individual stock. For the investor who doesn't have the time, resources, or inclination to hire a broker or build a broadly diversified portfolio of stocks, they are a terrific option.
The S&P 500 is made up of the 500 largest companies in the U.S., which represents about 80% of the available market cap, and is considered the best gauge of the performance of large-cap U.S. stocks. As such, there is more than $5 trillion in indexed assets invested in the S&P 500, including more than a dozen ETFs.
Through just one of these ETFs, you get access to the 500 largest companies in the U.S. without buying shares of them individually. It begs the question: Could you retire a millionaire by investing in just the S&P 500 alone? Let's take a look.
Source Fool.com
