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$50 a Week Can Build a $1.1 Million Portfolio in 25 Years

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  Published in Stocks and Investing on Friday, December 5th 2025 at 10:14 GMT by The Motley Fool

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From $50 a week to a million‑plus portfolio – the math behind long‑term investing

The MSN Money article “If you save and invest $50 each week, this is how massive your portfolio could be after 25 years” takes the simple premise that small, regular contributions can grow into a sizeable nest‑egg and turns it into a concrete, visual exercise. While the headline is compelling, the piece is a deep dive into the mechanics of compound interest, the impact of different rates of return, and practical ways to turn a modest weekly habit into a long‑term wealth strategy.

1. The starting point: $50 a week

The article begins by converting the weekly figure into an annual one – $50 × 52 = $2,600 per year. It then asks readers to imagine that this amount is deposited into an investment account each year for 25 years. The narrative immediately highlights two key variables that will determine the end value:

1. The investment return (annual rate of return).
2. The compounding frequency – how often the interest is added to the principal (annually in the examples, but the calculator offers quarterly and monthly options).

2. Three return scenarios: 6 %, 8 %, 10 %

The bulk of the article presents a side‑by‑side comparison of the three most common average annual returns for broad market index funds. For each scenario, a chart shows how the portfolio value climbs year by year, ending at a single number at the 25‑year mark.

The article explains that the 8 % figure is close to the historical average return of the S&P 500, making it a reasonable benchmark for long‑term investors. It also notes that higher returns come with higher volatility, so a diversified portfolio of low‑cost index funds is usually recommended to stay close to the 8 % estimate.

Each chart also shows the power of compounding: the later years, when the portfolio is larger, generate more interest, creating a “snowball” effect. Readers can see that even with a modest weekly contribution, the compounding factor turns the small sums into a sizeable sum in a few decades.

3. Starting age matters

To make the example more relatable, the article offers two additional timelines:

• Start at 25: By the time you reach 50, you have 25 years of growth.
• Start at 35: You’re only 15 years in, so the final amount drops to around $800,000 at 60, assuming the same 8 % return.

The takeaway is clear: the earlier you begin, the more you benefit from compounding, even if you’re contributing the same amount.

4. Tax‑advantaged accounts vs. taxable brokerage

The article breaks down how the same $50/week would look in different account types:

• 401(k) / IRA – Tax‑deferred growth (or Roth for tax‑free withdrawals) reduces the effective return by the tax bracket you’re in now, but you still benefit from compounding.
• Taxable brokerage – No tax deferral, but you can invest in low‑fee ETFs or mutual funds. The article recommends using a “tax‑efficient” asset allocation: bonds in taxable accounts, stocks in tax‑advantaged ones.

The piece highlights that, in practice, a combination of both approaches can maximize the growth potential while keeping tax bills manageable.

5. Adjusting contributions over time

A practical part of the article discusses “percentage‑of‑income” contributions. If you earn $40,000 a year, $50 a week is 6.5 % of your salary – a manageable rate. The article encourages readers to bump up their weekly contribution each time they receive a raise, or to set up an automatic 5 % increase every year to stay on track.

6. Common pitfalls to avoid

Using data from a linked “Why investing is better than saving” article, the MSN piece lists three pitfalls:

1. Frequent market timing – Trying to “time the market” rarely pays off; stay invested.
2. High‑fee funds – Fees erode returns; aim for low‑cost index funds (expense ratio < 0.1 %).
3. Neglecting diversification – A single asset class can be risky; mix stocks, bonds, and possibly real estate.

7. Interactive tools

The article features a built‑in calculator that lets readers input their own weekly amount, expected return, and number of years. Users can see in real time how the final portfolio changes. The tool also offers a “future‑value” tab that breaks down growth by decade, mirroring the charts in the text.

8. Bottom line

By the end, the article leaves readers with a concrete mental model: a $50 weekly contribution, invested at an average 8 % return, grows to over a million dollars in just 25 years if you start early. Even with a 6 % return, you’d still end up with more than a million. These figures underscore the power of consistency and compound interest.

The article’s tone is upbeat and educational, using everyday numbers to demystify investing. It’s a useful primer for anyone who has a spare $50 each week and wants to understand how that small habit could turn into a financial safety net – or even a comfortable retirement fund – over time.