Vanguard ETF highlighted as path to $1 million retirement savings

The Vanguard Total Stock Market ETF (VTI) tracks roughly 3,500 U.S. stocks, charges a 0.03% annual expense ratio and has returned about 9.5% per year since its 2001 launch. Modeling a $500 monthly contribution over a 30‑year horizon shows a balance just over $1.1 million assuming a 10% average annual return, or about $915,000 at a 9% return. Consistent investing and realistic return assumptions are key to reaching the $1 million milestone.

Retirees face additional decisions beyond portfolio size. One Degree Advisors warns that leaving an IRA untouched during the low‑income “tax valley” between retirement and the start of Social Security and required minimum distributions (RMDs) can create a hidden tax liability. Converting pretax IRA dollars to a Roth IRA during this period can lock in lower tax rates. In a cited case, a couple with a $3 million portfolio used annual Roth conversions and saved an estimated $1.3 million in lifetime taxes.