2 Vanguard Index Funds Could Turn $400 Per Month Into $16,800 in Annual Dividend Income by Retirement

The S&P 500 (SNPINDEX: ^GSPC) outperformed virtually every other asset classes over the last decade, including bonds, international stocks, precious metals, and real estate. The index also outperformed over 85% of large-cap funds, meaning S&P 500 index funds often produce better returns than professional money managers.Investors can use that information to build a portfolio that generates large amounts of passive income. For instance, $400 invested monthly in an S&P 500 index fund could grow into $789,500 over three decades. That sum could then be reinvested (less capital gains tax) in a high dividend yield index fund to generate $16,800 in passive income annually.Here are the important details.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool