Targeting millionaire status by your 65th birthday? Depending on how old you are today, the S&P 500 may be all you need to get there.
The S&P 500 is a basket of the U.S.’s largest public companies. Those 500-plus organizations collectively account for about 80% of the stock market’s total value. As such, they drive much of the performance for the market as a whole. That’s why when someone says, “The market was up 5% today,” it often means specifically that the S&P 500 went up 5%.
Now let’s get back to that millionaire goal of yours. The S&P 500 has three characteristics that make it a suitable anchor for your retirement portfolio. To start with, it’s diversified. Holding hundreds of different stocks spreads out your risk so that you’re not dependent on any one of them.
