Alright, hear me out… I’m not asking for advice, just some clarity. Here’s the idea I have in my head:
I’ve got $3000 I’m ready to invest.
Put that $3000 into a straightforward S&P 500 tracker like VOO (which people seem to mention a lot here).
Set up a regular $360 monthly contribution to this same investment.
Wait it out for 30 years…
End up with around $650,861.59 (assuming an average annual return of 9%). But here’s my question: is this money actually accessible when I retire, or is it just a “number” on a screen?
Is it really that straightforward? Or am I missing something? And if it is this easy, why doesn’t everyone put even a small amount in to keep up with inflation and grow their savings over time?
Just for some background, I’m new to all this. I’ve never invested before, and I’m just trying to see if this is as foolproof as it sounds. I’m not looking to become a high-roller… just interested in steady, low-risk growth. Why don’t more people go for something like this if it works?
It is this simple, but honestly, it’s boring, and a lot of people get FOMO. Some avoid investing because all investments carry risk. Really conservative folks may just use CDs or savings accounts. But most know the stock market is the best bet, especially now that real estate is out of reach for many.
@Kavi
Same here—I’m not aiming to be wealthy, just enough to help my wife work less and have a retirement cushion. So I guess a bit of risk is okay if the rewards are solid?
Yes, it is that simple, but sticking to it over 30 years is the hard part. You’ll have to keep at it through good and bad times—whether it’s personal challenges or market crashes like 2000 or 2008. Would you really be able to stick to your plan if you saw your balance drop for years straight? That’s the challenge most people face.
@Marin
Fair point, but I like to think that once it’s in, it’s staying in. I’m only investing extra funds I don’t need for day-to-day expenses or debts. Maybe that’ll help me stick with it?
Vey said: @Marin
Fair point, but I like to think that once it’s in, it’s staying in. I’m only investing extra funds I don’t need for day-to-day expenses or debts. Maybe that’ll help me stick with it?
Like Tyson said, ‘Everyone has a plan until they get punched in the face.’ Imagine watching your portfolio shrink for three years straight. That would be tough for anyone.
Vey said: @Marin
Fair point, but I like to think that once it’s in, it’s staying in. I’m only investing extra funds I don’t need for day-to-day expenses or debts. Maybe that’ll help me stick with it?
Also remember, as you near retirement, you should reduce your risk level. Target date funds can help with this—they gradually shift from stocks to bonds over time so you’re not fully exposed right before retirement.
Vey said: @Hollis
This sounds like something I need to understand better!
They’re basically a mix of stocks and bonds that gets more conservative as you get closer to the target date. They’re popular in 401(k)s for people who want a set-and-forget investment.