The notion of accumulating a million dollars sounds, frankly, a bit preposterous. It’s a figure that conjures images of yachts and tiny, infuriatingly expensive dogs wearing sweaters. But, if you set aside the yachts (sensible, really) and focus on the mathematics, it’s… achievable. Not by finding a stray tenner under the sofa cushion, mind you, but through the quietly miraculous process of investing. Compound earnings, you see, are a bit like rabbits. They start small, but given enough time and favorable conditions, they multiply with surprising speed. It’s not exactly alchemy, but it feels a bit like it.
You don’t need to stumble upon the next Amazon, either. The truly remarkable thing is that a perfectly respectable, utterly unglamorous exchange-traded fund – the Vanguard Growth ETF (VUG 0.92%) – has demonstrated a capacity to do the heavy lifting. It’s not a name that rolls off the tongue, but then neither does ‘hypotenuse,’ and yet, that’s a useful thing to know.
Since its inception in January 2004, VUG has averaged an 11% annual return. Over the last decade, it’s been a touch more robust, averaging 17%. Now, predicting the future is a fool’s errand (ironically, given my profession), but let’s split the difference and assume a long-term average of 14%. If you were to diligently invest $500 each month, that 14% would, over approximately 25 years, nudge you past the million-dollar mark. It’s not instant gratification, but then few worthwhile things are.
VUG focuses on large-cap growth stocks. Which, translated from finance-speak, means it invests in bigger companies that are expanding at a faster rate than their peers. It’s a two-pronged benefit. Large companies, being established, tend to be a bit more…stable. They’re less likely to vanish overnight, leaving you with nothing but a strongly worded letter and a profound sense of regret. And growth stocks, well, they actually grow. It’s a remarkably logical concept, really.
Now, a 14% annual return over 25 years isn’t guaranteed, of course. The market is a capricious beast, prone to sudden tantrums and inexplicable enthusiasms. But VUG has outperformed the market in 15 out of the last 22 years, which is a reasonably encouraging statistic. And, as any seasoned investor will tell you, time and money are interchangeable. If you’re short on one, you can compensate with the other. It’s not quite physics, but it’s a useful principle to bear in mind. The point is, a consistent, long-term approach, even with modest contributions, can yield surprisingly substantial results. It’s not about getting rich quick; it’s about quietly, persistently building a future. And that, frankly, is a rather satisfying thought.
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2026-01-30 13:42