3 Steps to Build a Million-Dollar Portfolio in Your 20s

So, you’re in your 20s and you want to be a millionaire by investing in a world-class portfolio without paying thousands of dollars in fees to firms like JP Morgan or Morgan Stanley? Here are the three things you need to do right now.

1. Open a Brokerage Account

Open a brokerage account today through Fidelity or Vanguard. Automate the funding of that account for $20 to $25 a week. The amount really doesn't matter; what matters is developing the habit of regular investing.

2. Invest in Index Funds and Bonds

Invest 90% of that money in a low-cost index fund like Vanguard's VOO or Fidelity's FXAIX. Then, invest the remaining 10% in either Vanguard's total bond fund (VBTIX) or Fidelity's total bond fund (FTBFX).

3. Adjust Investment Percentages Over Time

Every few years, adjust those percentages so that 110 minus your current age is the amount you invest in one of the low-cost index funds. The remaining percentage should go into the total bond fund. This strategy will give you increasing stability and less risk as you grow older and might need access to that money.

Now you have a world-class plan that costs you only one minute of your time, versus tens of thousands of dollars in fees over the course of a lifetime.

Source