A $500-a-Month Investment Could Grow Into Real Income: I Ran the Numbers

How much money could you really earn by investing $500 a month?

That’s a pertinent question, because many working-age Canadians are following a policy like the one just outlined, investing a few hundred a month with hopes of eventually having a sum they can retire off of.

It’s a policy that has been proven to work over the long term.

Provided you invest in sensible things, you could end up with quite a bit of money in your account after 30 years of $500 per month of investing.

Here’s how much.

About $1 million If you invest $500 per month, and each $500 monthly investment earns a 10% compounded annual growth rate (CAGR), you end up with $1.04 million at the end.

I figured this out in Excel.

The data table is too large to share here, so I’ll just include a little screenshot below showing the ending amount for the column in which I calculated the ending amounts of several monthly contributions.

By investing $500 a month at a 10% compounded annual rate of return, you can end up with a handsome sum of money at the end.

Continue reading at the original source →