Want a $1 Million Portfolio by Retirement? How Much to Invest Today.

Investors can aim for $1 million by retirement. If your portfolio reaches that level, you'll have many retirement possibilities. You can invest in dividend stocks to generate retirement income. You could also withdraw some money annually. Either way, reaching that point will allow you lots of freedom to live your life.

How much do you need to invest today to reach $1 million without risking too much?  I'll show you how much you need to invest today based on your age, years till retirement, and portfolio growth rate.  

Save more to invest later. Ideally, everyone would invest a few thousand dollars in their teens in the next Amazon and be set for life. That's unrealistic for most individuals. Finding the next great growth stock is challenging, and not everyone can save that much money young.  

But the good news is that you may make up for not investing in your teens, 20s, or 30s by investing more in stocks later in life. Investing less than $100,000 in a growth-oriented exchange-traded fund (ETF) in your 40s could help you reach $1 million by retirement.  

There are several possibilities. If you're an ultra-risk-averse investor who wishes to invest solely in the safest stocks, the 5% growth column may yield small long-term profits. Sacrificing profits for safety requires more money invested today. If you wish to earn S&P 500-like market returns of 10%, focus on the 10% growth column.

Finally, growth investors who are willing to take on risk for possibly market-beating returns of 15% should focus on the last column. You don't have to take much risk with this method. An ETF like the Invesco QQQ Trust (NASDAQ: QQQ) may help. The fund buys Nasdaq's top 100 nonfinancial equities. Over the past decade, it has returned 390%. This averages 17.3% compounded annual growth.  

The fund may beat the market by investing in Nasdaq growth stocks. Due to the volatility of growth-oriented stocks, it may underperform the market in some years, but if you have a lot of investing years left, have time for stocks to recover from downturns, and don't need the money soon, this may be a good investment.  

Too little today? Invest gradually. The table illustrates how much you would need to invest today if you just invest a lump sum. If you don't have enough money to invest now, you can grow your portfolio over time.  

Although inflation makes saving money harder than ever, if you can save $50 every week, you can add $2,600 to your portfolio each year. More portfolio growth means bigger gains.  

If you don't invest early, it may seem depressing, but you can add cash as your wages grow. An ETF like the Invesco QQQ Trust makes it easy to invest monthly, quarterly, or annually without picking specific stocks. You can improve your future and retirement finances by doing that.  

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