1 Vanguard Index Fund Could Turn $375 Per Month Into a $569,400 Portfolio That Pays $17,200 in Annual Dividend Income

The median weekly income for U.S. workers was $1,165 in the third quarter, which is roughly $60,500 per year, according to the Labor Department. That translates into after-tax income of roughly $45,000 per year even in the worst-case scenario. Financial advisors usually suggest saving 20% of after-tax income for retirement, which is $9,000 per year (or $750 per month) for the median worker.However, workers can build a sizable investment portfolio that pays a significant amount of passive income by retirement with half that amount. To be clear, I am not suggesting that anyone should save less than 20% of their post-tax income, but rather pointing out that small sums invested regularly can build tremendous wealth over time.Indeed, $375 invested monthly in the Vanguard High Dividend Yield ETF (NYSEMKT: VYM) could build a $569,400 portfolio over 30 years, and that portfolio could pay about $17,200 in annual dividend income. Here are the important details.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool