I'm sure most readers would agree that having a million-dollar ASX share portfolio would be very welcome.
And while it can seem unattainable when you are starting from scratch, history shows that this goal is very much achievable.
The key is to come up with a plan, stick to it, and let the power of compounding work its magic.
Turning $10,000 into $1 million with ASX shares
Did you know that over the last 30 years ASX shares have provided investors with an average return of approximately 9.6% per annum? That's despite the share market having to deal with wars, pandemics, bubbles, and recessions.
This means that if you were to build a time machine, go back to 1993, and invest a single $10,000 into ASX shares, your portfolio would now be worth a cool $156,000 if you earned the market return.
While that is admittedly well short of our $1 million goal, it is still a staggering return on investment.
To get to target, without doing anything else, we would have to invest our funds for a smidgen over 50 years and earn the same return.
Getting there quicker
The good news is that investors can build a million-dollar portfolio far quicker if they are able to make regular investments into ASX shares.
For example, if you are in a position to invest $10,000 into the share market each year, all else equal, you would hit your goal in 24 years.
And just in case you were wondering, thanks to compounding, it would take you just seven more years of doing the same to grow your portfolio by a further million to the $2 million mark.
Overall, I believe this demonstrates why investing consistently over a long period is arguably the best way to grow your wealth.
And while it is worth remembering that there's no guarantee that the share market will generate the same level of returns over the next 30 years, these returns are in-line with historic averages on Wall Street. So, it certainly is possible.
