Retire a Millionaire with the S&P500: Is it Possible?

is it possible to retire a millionaire by investing only in the s&p500 index fund?
Is it possible to retire a millionaire by investing only in the S&P500 index fund?

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The S&P500 is one of the most attractive index funds amongst many others. This index fund tracks the performance of the top 500 companies in the U.S. The S&P500 also earns on average a whopping 8%-10% yearly return. This makes it one of the most secure and rewarding index funds in investors portfolio’s.

If you’re curious as to which companies are pooled in this index fund I’ll have the entire list for you too.

As more of the public learns about investing and just how easy it is to purchase a stock, more long term assets will get discovered. While cryptocurrency has been extremely popular amongst younger people, at some point it’s time to sit down and start thinking about your long term financial success.

So, is the S&P500 all you need to retire a millionaire? Lets dive in.

S&P500 franknez.com

Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.

Lets get started!

I’m writing this article to further provide knowledge to my readers participating in crypto and short term trading. My mission is to help you succeed financially. And although I’m pro opportunity, I’m also pro on delayed gratification and long term investing.

To start this off, see what this multibillionaire thinks of the S&P500 index fund.

Warren Buffett approves

We all know Warren Buffett for being one of the most successful stock pickers of all time. If you follow him then you’re also aware of how much he loves index funds. Warren has even instructed the trustee of his estate to invest 90% of the money he leaves to his wife in the S&P500. This is a clear sign of what Warren Buffett’s conviction in this particular index fund.

Warren Buffett S&P500 quote

“In my view, for most people, the best thing to do is own the S&P 500 index fund.”

Warren Buffett

The benefits of owning the S&P500 include low commission fees and a diversified pool consisting of the most successful companies in America.

So is the S&P500 enough? In reality, this depends on what how much is enough to you. If Warren Buffett’s conviction towards the S&P500 is strong then it must be right?

Investment calculator: $1 million dollars

Investment calculator $1 million dollars
via. Smart Asset

If you were to invest only $400 per month with a return of 10% for 30 years, you’d retire a millionaire.

For most retirees this would provide a comfortable living, especially when armoring up with social security benefits.

You can use the calculator here to personalize your contributions and years to grow.

S&P500 historical chart
S&P500 historical chart

Does the S&P500 pay dividends?

Yes, the S&P500 has paid dividends ranging from 3%-5%. It has never dropped below 3% on average since it’s establishment. I personally hold the S&P500 through Vanguard, ticker symbol VOO. It’s been a great performing index fund long term and I plan on adding to my position yearly.

You may choose to purchase the S&P500 monthly or on a yearly basis. I usually contribute to my portfolio when the market is on discount.

Reinvesting my dividends has allowed me to purchase fractions of the index fund passively. This snowball effect will play a massive role to my portfolios growth long term.

The S&P500 was actually my very first investment in the stock market. Just recently a gentlemen in the AMC community made an eye opening statement. He said if you put $5 million dollars into the S&P500 it would yield you $500,000 in dividend income per year. And this is without contributing a single dollar!

It’s no wonder Warren Buffets instructions are to move 90% of his assets into this index fund. It truly is a wealth builder.

Why does the S&P500 keep going up?

The S&P500 will continue to go up simply because America is always growing. As long as America remains a capitalist country, this index fund is always going to trend upwards.

The S&P500’s performance is going to highly depend on the performance and well-being of our economy. Sure we might stumble across some hiccups but America is always pushing forward. The top 500 companies being tracked by the index fund are always growing. These companies are the best in the world and their primary goal is growth.

I don’t see a moment in time where the S&P500 yields poor performance. Everything we know to be America would have to be wiped out from the face of the planet. And I think we’re doing pretty well to say the least.

Like every stock in the market, there’s no ceiling to just how high the S&P500 can go. As long as there is inflation, and there will always be, this index fund is going to continuously go up forever.

The best time to plant a tree was yesterday. The second best time is today. This Chinese proverb makes so much sense in every aspect of a successful and abundant world. The sooner we start investing in our futures means the better off we will be when we are ready to reap the rewards.

Which companies are in the S&P500?

The S&P500 actually consists of 505 total stocks but 500 total companies. You can skip scroll past this chart but here’s the entire list:


Apple Inc.
Microsoft Corporation
Amazon.com Inc.
Facebook Inc. Class A
Alphabet Inc. Class A
Alphabet Inc. Class C
Berkshire Hathaway Inc. Class B
JPMorgan Chase & Co.
Johnson & Johnson
Tesla Inc
UnitedHealth Group Incorporated
Visa Inc. Class A
NVIDIA Corporation
Home Depot Inc.
Procter & Gamble Company
Bank of America Corp
Mastercard Incorporated Class A
Walt Disney Company
PayPal Holdings Inc
Exxon Mobil Corporation
Comcast Corporation Class A
Verizon Communications Inc.
Adobe Inc.
Intel Corporation
Pfizer Inc.
Cisco Systems Inc.
Netflix Inc.
Coca-Cola Company
AT&T Inc.
Abbott Laboratories
AbbVie Inc.
salesforce.com inc.
Merck & Co. Inc.
PepsiCo Inc.
Chevron Corporation
Walmart Inc.
Wells Fargo & Company
Broadcom Inc.
Thermo Fisher Scientific Inc.
Accenture Plc Class A
McDonald’s Corporation
Medtronic Plc
NIKE Inc. Class B
Costco Wholesale Corporation
Texas Instruments Incorporated
Citigroup Inc.
Danaher Corporation
Eli Lilly and Company
Linde plc
United Parcel Service Inc. Class B
Honeywell International Inc.
Philip Morris International Inc.
Union Pacific Corporation
Qualcomm Inc
Bristol-Myers Squibb Company
Oracle Corporation
Amgen Inc.
NextEra Energy Inc.
Lowe’s Companies Inc.
Raytheon Technologies Corporation
Caterpillar Inc.
Starbucks Corporation
Morgan Stanley
International Business Machines Corporation
Goldman Sachs Group Inc.
Boeing Company
BlackRock Inc.
3M Company
CVS Health Corporation
Intuit Inc.
General Electric Company
Applied Materials Inc.
Deere & Company
American Tower Corporation
Target Corporation
Charles Schwab Corporation
American Express Company
Anthem Inc.
Intuitive Surgical Inc.
Charter Communications Inc. Class A
Lockheed Martin Corporation
Booking Holdings Inc.
Cigna Corporation
Advanced Micro Devices Inc.
Altria Group Inc
Fidelity National Information Services Inc.
ServiceNow Inc.
Micron Technology Inc.
S&P Global Inc.
Mondelez International Inc. Class A
Gilead Sciences Inc.
Lam Research Corporation
Prologis Inc.
Stryker Corporation
U.S. Bancorp
PNC Financial Services Group Inc.
Automatic Data Processing Inc.
Zoetis Inc. Class A
Truist Financial Corporation
TJX Companies Inc
T-Mobile US Inc.
Crown Castle International Corp
Duke Energy Corporation
CME Group Inc. Class A
ConocoPhillips
CSX Corporation
FedEx Corporation
Chubb Limited
Activision Blizzard Inc.
Capital One Financial Corporation
Colgate-Palmolive Company
Becton Dickinson and Company
General Motors Company
Norfolk Southern Corporation
Marsh & McLennan Companies Inc.
Sherwin-Williams Company
Estee Lauder Companies Inc. Class A
Southern Company
Fiserv Inc.
Illinois Tool Works Inc.
Air Products and Chemicals Inc.
Equinix Inc.
Intercontinental Exchange Inc.
Dominion Energy Inc
Autodesk Inc.
Freeport-McMoRan Inc.
Progressive Corporation
Newmont Corporation
Boston Scientific Corporation
Northrop Grumman Corporation
Global Payments Inc.
Humana Inc.
Aon Plc Class A
Eaton Corp. Plc
Edwards Lifesciences Corporation
Analog Devices Inc.
Illumina Inc.
Emerson Electric Co.
Vertex Pharmaceuticals Incorporated
Waste Management Inc.
NXP Semiconductors NV
HCA Healthcare Inc
Regeneron Pharmaceuticals Inc.
Ecolab Inc.
Moody’s Corporation
Dow Inc.
Dollar General Corporation
MetLife Inc.
Ford Motor Company
EOG Resources Inc.
KLA Corporation
Johnson Controls International plc
DuPont de Nemours Inc.
Roper Technologies Inc.
IDEXX Laboratories Inc.
Kimberly-Clark Corporation
Schlumberger NV
Ross Stores Inc.
IQVIA Holdings Inc
Exelon Corporation
L3Harris Technologies Inc
TE Connectivity Ltd.
American International Group Inc.
General Dynamics Corporation
Biogen Inc.
T. Rowe Price Group
American Electric Power Company Inc.
Trane Technologies plc
Prudential Financial Inc.
Twitter Inc.
Digital Realty Trust Inc.
Public Storage
PPG Industries Inc.
Baxter International Inc.
Sysco Corporation
Centene Corporation
Align Technology Inc.
Sempra Energy
Allstate Corporation
Bank of New York Mellon Corporation
Simon Property Group Inc.
Electronic Arts Inc.
HP Inc.
Agilent Technologies Inc.
Travelers Companies Inc.
Microchip Technology Incorporated
Constellation Brands Inc. Class A
Amphenol Corporation Class A
Parker-Hannifin Corporation
Walgreens Boots Alliance Inc
Marathon Petroleum Corporation
eBay Inc.
Alexion Pharmaceuticals Inc.
Cummins Inc.
General Mills Inc.
IHS Markit Ltd.
O’Reilly Automotive Inc.
Cognizant Technology Solutions Corporation Class A
Phillips 66
Xcel Energy Inc.
Archer-Daniels-Midland Company
Marriott International Inc. Class A
Aptiv PLC
MSCI Inc. Class A
Chipotle Mexican Grill Inc.
Synopsys Inc.
Kinder Morgan Inc Class P
Aflac Incorporated
Southwest Airlines Co.
Yum! Brands Inc.
Carrier Global Corp.
International Flavors & Fragrances Inc.
Discover Financial Services
Zimmer Biomet Holdings Inc.
Cadence Design Systems Inc.
Willis Towers Watson Public Limited Company
Motorola Solutions Inc.
Stanley Black & Decker Inc.
Monster Beverage Corporation
Hilton Worldwide Holdings Inc
Corteva Inc
Corning Inc
AutoZone Inc.
First Republic Bank
TransDigm Group Incorporated
DexCom Inc.
Paychex Inc.
PACCAR Inc
McKesson Corporation
Williams Companies Inc.
Otis Worldwide Corporation
Valero Energy Corporation
SBA Communications Corp. Class A
Public Service Enterprise Group Inc
Pioneer Natural Resources Company
Welltower Inc.
AMETEK Inc.
Nucor Corporation
D.R. Horton Inc.
Cintas Corporation
Rockwell Automation Inc.
WEC Energy Group Inc
Fastenal Company
Xilinx Inc.
Fifth Third Bancorp
State Street Corporation
Ameriprise Financial Inc.
Delta Air Lines Inc.
Mettler-Toledo International Inc.
SVB Financial Group
Eversource Energy
CBRE Group Inc. Class A
Equifax Inc.
LyondellBasell Industries NV
Kraft Heinz Company
ANSYS Inc.
ResMed Inc.
Verisk Analytics Inc
Ball Corporation
Fortinet Inc.
Arthur J. Gallagher & Co.
Weyerhaeuser Company
Kroger Co.
American Water Works Company Inc.
AvalonBay Communities Inc.
Skyworks Solutions Inc.
V.F. Corporation
DTE Energy Company
Kansas City Southern
Consolidated Edison Inc.
Best Buy Co. Inc.
Laboratory Corporation of America Holdings
Lennar Corporation Class A
Zebra Technologies Corporation Class A
Keysight Technologies Inc
Dollar Tree Inc.
Old Dominion Freight Line Inc.
Maxim Integrated Products Inc.
Hershey Company
Equity Residential
Copart Inc.
Synchrony Financial
International Paper Company
Realty Income Corporation
Vulcan Materials Company
Northern Trust Corporation
West Pharmaceutical Services Inc.
Cerner Corporation
CDW Corp.
Hartford Financial Services Group Inc.
ONEOK Inc.
Tyson Foods Inc. Class A
Fortive Corp.
ViacomCBS Inc. Class B
United Rentals Inc.
Expedia Group Inc.
Republic Services Inc.
Clorox Company
FLEETCOR Technologies Inc.
Martin Marietta Materials Inc.
Hess Corporation
PPL Corporation
McCormick & Company Incorporated
KeyCorp
Carnival Corporation
Alexandria Real Estate Equities Inc.
Edison International
Western Digital Corporation
Regions Financial Corporation
VeriSign Inc.
Church & Dwight Co. Inc.
Dover Corporation
Entergy Corporation
Occidental Petroleum Corporation
Tractor Supply Company
Ameren Corporation
Hewlett Packard Enterprise Co.
M&T Bank Corporation
Citizens Financial Group Inc.
Take-Two Interactive Software Inc.
Garmin Ltd.
Etsy Inc.
Xylem Inc.
Teradyne Inc.
FirstEnergy Corp.
Ventas Inc.
Expeditors International of Washington Inc.
Gartner Inc.
Caesars Entertainment Inc
W.W. Grainger Inc.
Halliburton Company
Seagate Technology Holdings PLC
Qorvo Inc.
Waters Corporation
Generac Holdings Inc.
Extra Space Storage Inc.
CarMax Inc.
Cooper Companies Inc.
Celanese Corporation
Trimble Inc.
Amcor PLC
Genuine Parts Company
Viatris Inc.
Teledyne Technologies Incorporated
Nasdaq Inc.
Essex Property Trust Inc.
Broadridge Financial Solutions Inc.
Las Vegas Sands Corp.
Akamai Technologies Inc.
Baker Hughes Company Class A
Royal Caribbean Group
Conagra Brands Inc.
Albemarle Corporation
Teleflex Incorporated
Darden Restaurants Inc.
CMS Energy Corporation
Ulta Beauty Inc
Cincinnati Financial Corporation
Avery Dennison Corporation
Healthpeak Properties Inc.
Mid-America Apartment Communities Inc.
Ingersoll Rand Inc.
United Airlines Holdings Inc.
Jacobs Engineering Group Inc.
Arista Networks Inc.
Omnicom Group Inc
AmerisourceBergen Corporation
Quest Diagnostics Incorporated
NetApp Inc.
Pool Corporation
Eastman Chemical Company
Duke Realty Corporation
MarketAxess Holdings Inc.
Kellogg Company
Domino’s Pizza Inc.
AES Corporation
Catalent Inc
Principal Financial Group Inc.
Enphase Energy Inc.
IDEX Corporation
Cardinal Health Inc.
NVR Inc.
Raymond James Financial Inc.
STERIS Plc
Hologic Inc.
MGM Resorts International
Tyler Technologies Inc.
PerkinElmer Inc.
Huntington Bancshares Incorporated
Charles River Laboratories International Inc.
Masco Corporation
L Brands Inc.
Paycom Software Inc.
Boston Properties Inc.
WestRock Company
NortonLifeLock Inc.
Incyte Corporation
Textron Inc.
FMC Corporation
Whirlpool Corporation
Devon Energy Corporation
DENTSPLY SIRONA Inc.
PulteGroup Inc.
J.M. Smucker Company
Alliant Energy Corp
J.B. Hunt Transport Services Inc.
Packaging Corporation of America
Fortune Brands Home & Security Inc.
Brown-Forman Corporation Class B
Evergy Inc.
Lumen Technologies Inc.
Citrix Systems Inc.
American Airlines Group Inc.
Diamondback Energy Inc.
LKQ Corporation
Westinghouse Air Brake Technologies Corporation
Leidos Holdings Inc.
UDR Inc.
Monolithic Power Systems Inc.
Snap-on Incorporated
CenterPoint Energy Inc.
PTC Inc.
Wynn Resorts Limited
Loews Corporation
Howmet Aerospace Inc.
C.H. Robinson Worldwide Inc.
Hormel Foods Corporation
Advance Auto Parts Inc.
Interpublic Group of Companies Inc.
Bio-Rad Laboratories Inc. Class A
Quanta Services Inc.
Lincoln National Corporation
Live Nation Entertainment Inc.
Allegion PLC
Fox Corporation Class A
ABIOMED Inc.
Tapestry Inc.
Atmos Energy Corporation
Mohawk Industries Inc.
Universal Health Services Inc. Class B
Mosaic Company
Iron Mountain Inc.
Host Hotels & Resorts Inc.
Hasbro Inc.
Cboe Global Markets Inc
BorgWarner Inc.
Jack Henry & Associates Inc.
Penn National Gaming Inc.
CF Industries Holdings Inc.
Lamb Weston Holdings Inc.
Henry Schein Inc.
F5 Networks Inc.
Pentair plc
W. R. Berkley Corporation
Everest Re Group Ltd.
Comerica Incorporated
DISH Network Corporation Class A
Newell Brands Inc
Norwegian Cruise Line Holdings Ltd.
Molson Coors Beverage Company Class B
Western Union Company
News Corporation Class A
Invesco Ltd.
Globe Life Inc.
Robert Half International Inc.
Regency Centers Corporation
Campbell Soup Company
Nielsen Holdings Plc
NiSource Inc
Pinnacle West Capital Corporation
Zions Bancorporation N.A.
DXC Technology Co.
A. O. Smith Corporation
Marathon Oil Corporation
Franklin Resources Inc.
Assurant Inc.
Discovery Inc. Class C
Kimco Realty Corporation
DaVita Inc.
Alaska Air Group Inc.
Huntington Ingalls Industries Inc.
Sealed Air Corporation
Juniper Networks Inc.
NRG Energy Inc.
People’s United Financial Inc.
PVH Corp.
APA Corp.
Federal Realty Investment Trust
Rollins Inc.
Leggett & Platt Incorporated
Cabot Oil & Gas Corporation
IPG Photonics Corporation
Vornado Realty Trust
Gap Inc.
Hanesbrands Inc.
NOV Inc.
Ralph Lauren Corporation Class A
Unum Group
Perrigo Co. Plc
Fox Corporation Class B
Discovery Inc. Class A
HollyFrontier Corporation
Under Armour Inc. Class A
Under Armour Inc. Class C
News Corporation Class B

These 10 stocks now make more than 21% of the index

  1. Apple3.924345%
  2. Microsoft3.300070%
  3. Amazon.com2.947227%
  4. Facebook2.049400%
  5. Berkshire Hathaway Class B1.553777%
  6. JPMorgan Chase1.520523%
  7. ExxonMobil1.500398%
  8. Alphabet Class C: 1.469428%
  9. Alphabet Class A: 1.467526%
  10. Johnson & Johnson1.443485%

The S&P500 is perfect for long term investing

S&P500 index fund long term investment
S&P500 index fund – long term investment

If you believe in the future of America and in most of these companies in the index fund then the S&P 500 is a great choice for you. Hold this index fund long term to get the most out of it.

New retail investors are beginning to learn the power of investing. Compound interest can snowball your investments and grow your portfolio overtime. So, should you invest in the S&P500?

Absolutely. This long term index fund is a safe investment primarily due to it’s diversified assets and innovative companies. The S&P500 has proven to always be growing and I can’t wait to see where this index fund is in the decades to come.

Before you go

Franknez.com

Let me know if you’re investing in any of these individual stocks in this index fund in the comments section below. I’d love to hear what you love about these companies and why you believe their further potential and growth.

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4 Comments

  1. Tressa Pinkleton

    Well, yes, since it’s establishment the dividend average has not dropped below 3%, but this is very different than your statement that it has “never” dropped below 3%. Also, over the past 30 years it has consistently been below 3%. This is a very different than what allude to in your article, which is why I am confused and decided to comment.

    https://www.investopedia.com/articles/markets/071616/history-sp-500-dividend-yield.asp#recent-and-historical-yields

    • Frank Nez

      Love your attention to detail – I will revise it to reflect since it’s establishment

  2. T. Pinkleton

    Hi there! You said, “[T]he S&P500 has paid dividends ranging from 3%-5%. It has never dropped below 3%.” Can you please cite this? My (very brief) research shows that it has paid below 3% since 2000. Am I looking at the wrong thing? https://www.multpl.com/s-p-500-dividend-yield

    • Frank Nez

      That it’s been below 3% of course but the median detailed on your link shows 4%. If you’re talking about average it’s definitely not below 3-5%. That’s why the median is 4%

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