Ticker: VTI โข Yield: 1.4% โข Growth (5yr): 7.0%
๐ฐ Net: approx. $423 /mo after tax.
Currently, you need $428,571.43. But if VTI grows its dividend by 7.0% annually, you can invest less today and hit your goal later.
*Assumes constant dividend reinvestment is NOT included, only dividend growth.
Reinvesting all dividends with constant yield:
| Year | Total Value | Monthly Income |
|---|---|---|
| Year 1 | $434,571 | +$507/mo |
| Year 3 | $446,825 | +$521/mo |
| Year 5 | $459,423 | +$536/mo |
| Year 10 | $492,496 | +$575/mo |
๐ Car payment? Gone. You're effectively driving for free.
Wondering how much capital you need for $500.00/month? Using Vanguard Total Stock Market ETF (VTI), you'd need approximately $428,571.43 invested today. Note that this math relies on a 1.40% yield.
Investors in the Broad Market ETF sector often watch Vanguard Total Stock Market ETF (VTI). Many portfolios hold it for consistency.
From an investment angle, committing $428,571.43 requires conviction in VTI's future.
Disclaimer: Informational only. Not financial advice. Yields vary. Past performance does not guarantee future results.