2 Vanguard Index Funds Could Turn $375 Per Month Into a $592,100 Portfolio That Pays $17,900 in Annual Dividend Income

The median annual income for full-time workers aged 25 to 34 was $59,000 in the fourth quarter, according to the Bureau of Labor Statistics. That means after-tax earnings would total roughly $45,000 in the worst-case scenario. Financial planners often recommend saving 20% of after-tax earnings for retirement, which means the median worker aged 25 to 34 should be saving about $9,000 per year, or $750 per month.Even half that figure invested wisely could grow into a sizable portfolio given enough time. For instance, $375 invested monthly in the Vanguard S&P 500 ETF (NYSEMKT: VOO) would be worth at least $592,100 in three decades after taxes and fees. And that sum could be reinvested in the Vanguard High Dividend Yield ETF (NYSEMKT: VYM) to generate about $17,900 per year in dividend income.Here's what investors should know.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool