Can a $50,000 Investment in the Nasdaq-100 Today Turn Into $1 Million by the Time You Retire?

Investors will find many of the best growth stocks in the world on the Nasdaq exchange. An even more exclusive club is in the Nasdaq-100 index, which includes the largest nonfinancial stocks on the exchange.
The Invesco QQQ Trust (NASDAQ: QQQ) tracks the Nasdaq-100, and it’s a popular exchange-traded fund (ETF) for many growth-oriented investors. Below, I’ll go over how a $50,000 investment into this ETF might grow over the long haul, and whether it can get to $1 million by the time you retire.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
QQQ Total Return Level data by YCharts
Can Invesco’s market-beating returns continue for decades?
As you can see from the chart above, the Invesco fund has been a solid, market-beating fund for not just years but decades, as it has outperformed the S&P 500 by a considerable margin.
While that looks great, investors should remember that past returns don’t predict future performance. It has been more than 20 years since the dot-com crash, and with many tech stocks trading at or around record levels, a strong case can be made for why they might underperform in the future. A crash may not happen this year but investors may want to brace for at least the possibility of milder returns over the long run.
However, since the Nasdaq-100 changes over time, I’m optimistic that this can remain a market-beating investment over the long haul, and that it can still be a great ETF to put in your portfolio until you retire.
Here’s how much a $50,000 investment in the Invesco Fund might be years from now
To forecast what a $50,000 investment might look like in the future, you need to consider how many investing years you have left before you plan to retire, and what annual return you expect to earn. To consider multiple scenarios, I’ve created the table below to show you how this size of an investment might grow over time, at varying interest rates and years to retirement.
Projecting a $50,000 Investment Into the Future | ||||
---|---|---|---|---|
Annual Growth Rate | ||||
Years to Retirement | 8% | 9% | 10% | 11% |
25 | $342,424 | $431,154 | $541,735 | $679,273 |
26 | $369,818 | $469,958 | $595,909 | $753,993 |
27 | $399,403 | $512,254 | $655,500 | $836,932 |
28 | $431,355 | $558,357 | $721,050 | $928,995 |
29 | $465,864 | $608,609 | $793,155 | $1,031,185 |
30 | $503,133 | $663,384 | $872,470 | $1,144,615 |
31 | $543,383 | $723,088 | $959,717 | $1,270,522 |
32 | $586,854 | $788,166 | $1,055,689 | $1,410,280 |
33 | $633,802 | $859,101 | $1,161,258 | $1,565,411 |
34 | $684,507 | $936,421 | $1,277,383 | $1,737,606 |
35 | $739,267 | $1,020,698 | $1,405,122 | $1,928,743 |
Data source: Calculations by author.
It’s possible for your investment to grow to more than $1 million, but two things are clear from the above table. The first is that you’ll likely need to remain invested for more than 30 years. Second, the fund will need to generate an annual return of at least 10% — which is the S&P 500’s long-run average. While that might seem probable, remember that this is if you invest now, while stocks are trading at elevated levels. It’s by no means a sure thing.
Investors should hope for the best but invest in preparation for the worst
There is no guarantee that a $50,000 investment, even into one of the best growth ETFs in the world, will be enough to get you to $1 million by the time to retire.
You can, however, increase the odds of getting to that level by adding to your investment. Any amount that you can add to your ETF over the years will result in more money that gets compounded, leading to a higher portfolio balance in the end, rather than if you just let the money sit. By doing that, you can increase the odds that you hit your retirement goals. And in the best-case scenario, your investment does better than you expect and you have even more money for retirement.
Should you invest $1,000 in Invesco QQQ Trust right now?
Before you buy stock in Invesco QQQ Trust, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Invesco QQQ Trust wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $795,728!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of February 7, 2025
David Jagielski has no position in any of the stocks mentioned. The Motley Fool recommends Nasdaq. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.