1 Vanguard Index Fund Could Turn $425 Per Month Into a $807,700 Portfolio That Pays $13,700 in Annual Dividend Income

The median annual income for full-time workers aged 25 to 34 was $58,500 during the first quarter, according to the Labor Department. That means after-tax earnings would be about $44,300 in the worst-case scenario. Financial planners typically recommend saving 20% of after-tax income for retirement, which would be about $8,860 per year (or $740 per month) for the median worker.Even a portion of that figure invested wisely could compound into a sizable portfolio with sufficient time. For instance, history suggests $425 per month in the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) could be worth about $807,700 after three decades. And the portfolio would initially generate about $13,700 per year in passive income -- but that figure could rise even higher with more time.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool