1 Vanguard Index Fund Could Turn $450 Per Month Into a $905,200 Portfolio That Pays $16,400 in Annual Dividend Income The median annual income for full-time workers aged 25 to 34 was $59,280 during the first quarter, according to the Labor Department.
That means after-tax earnings would be about $45,100 in the worst-case scenario
Financial planners usually recommend saving 20% of after-tax income for retirement, which would be $9,020 per year (or about $750 per month) for the median worker. Even a portion of that figure, invested wisely, could build a sizable portfolio over time. History says $450 per month in the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) could be worth about $905,200 after three decades.
And the portfolio could initially generate about $16,400 in passive income per year. The Vanguard Dividend Appreciation ETF is a ready-made portfolio of financially stable companies The Vanguard Dividend Appreciation ETF measures the performance of 331 U.S. stocks that have regularly raised their dividends each year for at least a decade. It excludes stocks with dividend yields in the top 25% to avoid companies with unsustainable payouts and minimal growth prospects.