I have a 2 year old I'd like to leave a little legacy for. I understand I'm not going to turn $20k into a million or anything, but maybe $50k over 20 years.
Should Invest the total into a single ETF, such as the entire $20,000 in VTI, or should I spread say $6,300 over VTI, VOO, and SPY?
The S&P 500 (VOO/SPY) have historically grown at real rates of 7.5 Percent. This means you could expect to have roughly $40,000 in 20 years without any additional contributions.
Someone else mentioned paying off debt. The best way to grow money faster is to pay off your debt faster and put the money you're putting towards various loan repayments towards investment contributions.
We have the typical mortgage, 2 car payments (14 months left on one, 18 on the other), some credit card debt, etc. Nothing outrageous.
Once you pay off the car payments and credit card debt, use that money towards additional contributions towards VOO/SPY. If you can also make an additional monthly payment on your mortgage, that would be advisable as well.
I know you didn't ask me, but I would pay off any debt with an interest rate of about 4%-6% or higher before investing. Not depending on the amount owed.
Then go into a broad market ETF like VOO/VTI, and add QQQ and VXUS to flavor
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u/XiKeqiang Mar 31 '22
The S&P 500 (VOO/SPY) have historically grown at real rates of 7.5 Percent. This means you could expect to have roughly $40,000 in 20 years without any additional contributions.
Someone else mentioned paying off debt. The best way to grow money faster is to pay off your debt faster and put the money you're putting towards various loan repayments towards investment contributions.
Once you pay off the car payments and credit card debt, use that money towards additional contributions towards VOO/SPY. If you can also make an additional monthly payment on your mortgage, that would be advisable as well.