He put $50,000 into an index fund, did nothing for 5 years, and it became $75,000
4 min read · RealCase summary
Tae put $50,000 into VTSAX — the Vanguard Total Stock Market Index Fund, which he calls his "personal favorite index fund," carrying a 0.04% expense ratio — in 2017.
He made no further active management of the position, describing the entire effort as having "spent 10 minutes 5 years ago opening up my account."
Over five years, the investment grew to roughly $75,356.23, a gain of $25,356.23 and an average annual return of 8.55%. He contrasts the fund's passive simplicity with a rental property he held over the same period, which returned substantially more but demanded far more hands-on management and complexity.
Key takeaways
- ›Invested $50,000 in VTSAX (Vanguard Total Stock Market Index Fund) in 2017 in a single lump sum
- ›Made zero trades for 5 years — no rebalancing, no buying the dips, no selling
- ›Grew to about $75,356 by 2022, an 8.55% annualized return, with account setup taking about 10 minutes
Original source
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