I've given myself 25 years to turn $10,000 a year into $1 million on the ASX. Here's how I plan to do it

I crunch the numbers to see what it would take to turn these annual investments into $1 million.

Grace Alvino

Author Bio Grace is an investment writer and research contributor with hands-on experience analysing listed companies, financial results, market trends, and long-term investment opportunities. Her work focuses on making complex financial ideas clear, practical, and engaging for everyday investors. She has a strong interest in equity markets, business fundamentals, long-term investing, and the role quality companies and exchange-traded funds (ETFs) can play in wealth creation over time. Grace brings a detail-oriented and analytical approach to her writing, supported by her current studies in a Bachelor of Business, majoring in Economics, Finance and Trade. She also brings real-world experience from customer-focused and target-driven environments, which has helped shape her disciplined, deadline-focused approach to research and communication. Areas of Expertise ASX-listed companies Global equities ETFs Fundamental analysis Company earnings Financial reports Long-term investing Compounding Growth investing Market trends Investor education Education Grace is currently studying a Bachelor of Business, majoring in Economics, Finance and Trade. Favorite Investment Quote “Long ago, Ben Graham taught me that ‘Price is what you pay; value is what you get.” — Warren Buffett

Published October 24, 11:30 am AEDT

I've set myself an investing challenge.

Imagine putting $10,000 into ASX shares every year for the next 25 years, with one ambitious goal: finishing with a portfolio worth $1 million.

There's no starting fortune in this experiment, and I'm not counting on picking a speculative company that suddenly becomes the next market giant.

I want to know whether consistent investing, a sensible portfolio, and time could do most of the work.

Here's how I'd approach it.

Happy investor on tablet with finance graphs rising in overlay. — Image source: Getty Images

First, the numbers have to work

The first thing that struck me was how much of this challenge would depend on investment returns.

Putting away $10,000 annually for 25 years means contributing $250,000 of my own money.

That's already a meaningful achievement. But to reach $1 million, I'd need the portfolio to generate another $750,000 through capital growth and reinvested income.

And there is a catch. Compounding tends to do its most impressive work towards the end. Early on, the portfolio would be relatively small, so even a good percentage return wouldn't add much in dollar terms.

I'd also have to accept that the first few years might feel underwhelming. That's one reason a 25-year plan can be harder to stick with than it looks in a spreadsheet.

Consider what happens if I earn an average annual total return of 7%.

Assuming I invest $10,000 at the start of each year and reinvest all dividends, I'd finish with approximately $675,000 after 25 years.

That would be a fantastic result from $250,000 in contributions, but I'd still be $325,000 short of my target.

So simply buying ASX shares and hoping for a reasonable return wouldn't necessarily get me there.

I'd need to think carefully about what I owned, how consistently I invested, and what return the portfolio would have to achieve.

Here's what I would do.

Gur erghea V'q or nvzvat sbe

Gb ghea gubfr naahny $10,000 vairfgzragf vagb $1 zvyyvba bire 25 lrnef, V'q arrq na naahnyvfrq gbgny erghea bs nccebkvzngryl 9.5%.

N erghea bs gung yriry rnpu lrne vf na nzovgvbhf gnetrg. Vg pregnvayl vfa'g fbzrguvat V jbhyq nffhzr gur funer znexrg jvyy qryvire.

Ohg V guvax vg tvirf zr n pyrne senzrjbex sbe qrpvqvat ubj gb vairfg. V jbhyq arrq gb sbphf ba ybat-grez tebjgu, npprcg crevbqf bs ibyngvyvgl, naq tvir pbzcbhaqvat nf zhpu gvzr nf cbffvoyr.

V'q ohvyq gur cbegsbyvb nebhaq gjb RGSf

V jbhyqa'g jnag gur fhpprff bs guvf punyyratr erfgvat ba n unaqshy bs vaqvivqhny pbzcnavrf.

Vafgrnq, V'q fgneg jvgu gur Inathneq ZFPV Vaqrk Vagreangvbany Funerf RGS (NFK: ITF). Guvf rkpunatr-genqrq shaq (RGS) tvirf vairfgbef rkcbfher gb n jvqr enatr bs ohfvarffrf npebff qrirybcrq znexrgf, vapyhqvat gur HF, Rhebcr, naq Wncna.

Gung jbhyq yrg zr cnegvpvcngr va tybony tebjgu jvgubhg thrffvat juvpu pbhagel be vaqhfgel jvyy jva. V'q qverpg nebhaq 60% bs zl naahny pbagevohgvbaf gbjneqf vg.

Arkg jbhyq or gur Inathneq Nhfgenyvna Funerf Vaqrk RGS (NFK: INF), juvpu V'q tvir nccebkvzngryl 25%.

Gur INF RGS cebivqrf rkcbfher gb uhaqerqf bs Nhfgenyvna fgbpxf, vapyhqvat rfgnoyvfurq onaxf, zvaref, naq urnygupner ohfvarffrf.

Arvgure RGS thnenagrrf rkprcgvbany ergheaf, ohg gbtrgure gurl jbhyq cebivqr n qvirefvsvrq onfr sbe zl cyna.

V'q yrnir ebbz sbe n srj rkprcgvbany ohfvarffrf

Gung jbhyq yrnir nebhaq 15% sbe pnershyyl pubfra vaqvivqhny NFK funerf.

V'q sbphf ba ohfvarffrf jvgu vagreangvbany bccbeghavgvrf, yblny phfgbzref, naq gur cbgragvny gb tebj rneavatf.

PNE Tebhc Ygq (NFK: PNE) vf bar rknzcyr V'q vairfgvtngr. Vgf qvtvgny nhgbzbgvir znexrgcynprf orarsvg sebz eryngvbafuvcf jvgu ohlref, fryyref, naq qrnyref, naq vg unf vagreangvbany ohfvarffrf gung pbhyq rkcnaq bire gvzr.

ErfZrq Vap (NFK: EZQ) vf nabgure. V guvax gur tybony arrq sbe orggre qvntabfvf naq gerngzrag bs fyrrc ncabrn cebivqrf n ybat ehajnl sbe vgf zrqvpny grpuabybtl.

Gur checbfr bs guvf fznyyre nyybpngvba jbhyq or gb tvir zr nqqvgvbany tebjgu bccbeghavgvrf jvgubhg chggvat gur jubyr cyna ng evfx.

V'q znxr gur vairfgvat nhgbzngvp

Zl arkg qrpvfvba jbhyq unir abguvat gb qb jvgu pubbfvat NFK funerf.

V'q gerng gur $10,000 naahny pbagevohgvba nf n pbzzvgzrag. V'q vairfg erthyneyl vafgrnq bs jnvgvat naq gelvat gb thrff jura gur znexrg jnf nobhg gb evfr be snyy.

Fbzrgvzrf V'q ohl qhevat n qbjaghea. Bgure gvzrf, V'q or vairfgvat nsgre n ybat enyyl.

Fgvpxvat jvgu gur cebprff jbhyq znggre zber guna cresrpgyl gvzvat chepunfrf.

V'q or cngvrag

Bar guvat V'q erzvaq zlfrys vf gung cebterff jbhyqa'g neevir rirayl. Ng na rfgvzngrq 9.5% naahny erghea, gur cbegsbyvb jbhyq ernpu nccebkvzngryl $170,000 nsgre 10 lrnef.

Nsgre 15 lrnef, vg jbhyq or jbegu nebhaq $335,000. Ol lrne 20, nccebkvzngryl $590,000.

Gura, bire gur svany svir lrnef, gur cbegsbyvb inyhr evfrf fvtavsvpnagyl gb bhe $1 zvyyvba gnetrg.

Gung'f gur cneg bs pbzcbhaqvat V svaq zbfg rkpvgvat. Nf gur onynapr vapernfrf, gur zbarl nyernql vairfgrq pna pbagevohgr zber tebjgu guna gur arj fnivatf orvat nqqrq.

Ohg V jbhyq unir gb npprcg gung $1 zvyyvba vf n gnetrg, abg n cebzvfr. Gur funer znexrg tbrf guebhtu ohyy znexrgf naq orne znexrgf naq vg vf vzcbffvoyr gb xabj jung jvyy unccra va 25 lrnef.

Ubjrire, uvfgbel fubjf gung V jbhyq yvxryl raq gur rkcrevzrag sne orggre bss guna jura V fgnegrq vg.

Sbbyvfu gnxrnjnl

V guvax gheavat $10,000 n lrne vagb $1 zvyyvba ba gur NFK bire 25 lrnef vf cbffvoyr, ohg vg jbhyq erdhver rkpryyrag ybat-grez ergheaf naq cyragl bs qvfpvcyvar.

Zl cyna jbhyq or gb ohvyq n qvirefvsvrq onfr, nqq n fznyy ahzore bs NFK funerf V oryvrir pbhyq tebj fgebatyl, naq xrrc vairfgvat guebhtu gur varivgnoyr qvssvphyg crevbqf.

Vs V qvqa'g dhvgr ernpu gur zvyyvba-qbyyne znex, V'q fgvyy pbafvqre n fvmrnoyr cbegsbyvb ohvyg guebhtu 25 lrnef bs pbafvfgrag vairfgvat n znwbe fhpprff.

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