1 Year Review Investing in S&P 500 Index Fund (How Much $ I Made)

Key Takeaways

  • The speaker started investing in the S&P 500 Index with just $5 back in 2019 during college.
  • As of 2023, after consistently investing, the speaker has over $71,000 in one Vanguard account and over $10,400 in another.
  • Vanguard's Vo (Vanguard S&P 500 ETF) is the primary investment vehicle, favored for its low expense ratio of 0.03%.
  • Other recommended platforms include Fidelity and Charles Schwab, with alternative S&P 500 funds being SPDR's SPLG and Fidelity's FXAIX.
  • Over the past year, the investment in the S&P 500 has resulted in a return of $866.43, translating to an 18.75% return rate.
  • Dividend income from the S&P 500 amounted to $454, with quarterly increases observed throughout the year.
  • Contributions are made weekly via dollar-cost averaging, typically between $500 and $1,000.
  • Long-term commitment to investing in the S&P 500 is emphasized, regardless of market downturns.
  • The S&P 500 is presented as a diversified and simple investment choice for both beginners and seasoned investors.

Investment Strategy

  • Platform: Vanguard
  • Primary Fund: Vanguard's Vo (S&P 500 ETF)
  • Other Funds: Vanguard's VOO, SPDR's SPLG, Fidelity's FXAIX
  • Investment Frequency: Weekly
  • Contribution Amount: $500 to $1,000 weekly
  • Total Annual Dividend: $454

Key Achievements

  • Total Investment: Over $122,000
  • Total Returns: $866.43 (18.75% return rate)
  • Dividend Income: Quarterly increases, culminating in $454

Final Thoughts

  • The speaker advocates for consistent, long-term investing in the S&P 500.
  • Despite potential market declines, maintaining regular investments is advised.
  • The S&P 500 offers a well-diversified portfolio, making it a reliable choice for investors at any experience level.

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