Americans believe it takes an average net worth of $2.3 million to be considered wealthy, according to a 2025 survey from Charles Schwab, or around $839,000 to be "financially comfortable."
Investing is one of the simplest and most effective ways to build wealth, and you don't need to be a stock market expert to get started. If you have a goal of accumulating $2 million in the stock market, here's what you'd need to invest each month to get there.
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Choosing the right investment
Where you choose to invest will depend largely on your risk tolerance and what you're trying to achieve. If you're a beginner or are simply looking for a no-fuss investment that you can buy and hold for decades, an S&P 500 ETF can be a great choice.
The S&P 500 (^GSPC +1.16%) is made up of 500 leading U.S. companies, and an S&P 500 ETF includes the same stocks as the index while aiming to replicate its performance.
The primary advantage of an S&P 500 ETF is its long-term stability and track record. Analysis from Crestmont Research found that every 20-year period in the S&P 500's history has ended in positive total returns. This means that if you'd simply held an S&P 500 fund for 20 years, you'd have made money no matter how severe the volatility was in those decades.
Building a $2 million portfolio
Staying in the market for decades is key to maximizing your earnings in the stock market, so the sooner you can get started investing, the better.
Historically, the total returns of the S&P 500 have produced a compound annual growth rate of around 10%. If you're earning a 10% average annual return going forward, here's approximately what you'd need to invest each month to build a portfolio worth at least $2 million, depending on how many years you can invest:
| Number of Years | Amount Invested Each Month | Total Portfolio Value |
|---|---|---|
| 20 | $3,000 | $2.062 million |
| 25 | $1,700 | $2.006 million |
| 30 | $1,050 | $2.073 million |
| 35 | $625 | $2.033 million |
| 40 | $400 | $2.124 million |
Data source: Author's calculations via investor.gov.
One potential downside to the S&P 500 ETF is that it can only earn average returns. This investment follows the performance of the market, so it can't beat the market.
That might not be a dealbreaker for everyone, but if you're looking to earn higher-than-average returns, you may be better off investing in individual stocks. This approach requires more research, but you'll likely earn more than you would with a broad market ETF.
The S&P 500 ETF is a simple and straightforward investment that can help build long-term wealth, but getting started investing early is key. With enough time and consistency, you could potentially accumulate millions of dollars in the stock market.
