Is Now a Good Time to Invest? Your Path to $2 Million in the Stock Market

Whether you’re considering starting an investment portfolio or looking to expand an existing one, timing and consistency are critical factors in building long-term wealth. The sooner you begin investing, the better positioned you’ll be to take advantage of compound growth over decades. If accumulating $2 million is your financial goal, understanding how much to invest monthly—and when to get started—can make the difference between reaching that target and falling short.

According to a 2025 Charles Schwab survey, Americans believe an average net worth of $2.3 million defines true wealth, with $839,000 representing financial comfort. Investing doesn’t require expertise or complex strategies; it’s one of the most straightforward paths to building sustainable wealth. Let’s explore what a practical investment approach looks like and why beginning today can significantly impact your financial future.

Why Starting Your Investment Journey Today Matters

One of the most overlooked factors in successful investing is the advantage of starting early. The longer your money remains invested, the more time compound growth has to work in your favor. Historically, the S&P 500 has delivered a compound annual growth rate of approximately 10%, and this consistency over decades reveals an important pattern: every 20-year investment period in the index’s history has concluded with positive total returns, regardless of market volatility during those years.

This historical stability means that if you had simply purchased and held an S&P 500 fund throughout any 20-year span since the index’s inception, you would have ultimately made money. This track record, supported by research from Crestmont Research, underscores why is now a good time to invest—not necessarily to time the market perfectly, but rather to begin your investment journey while you still have time horizon on your side.

Starting your investment approach with broad-based market exposure through an S&P 500 ETF presents several advantages for both beginners and experienced investors seeking simplicity. The S&P 500 comprises 500 of the largest U.S. companies and provides instant diversification. An S&P 500 ETF mirrors this composition and aims to replicate the index’s performance, offering a hands-off investment strategy that requires minimal ongoing management.

Monthly Investment Requirements for a $2 Million Target

If you’re earning the historical 10% average annual return, here’s the practical breakdown of how much you’d need to invest each month to reach a $2 million portfolio, depending on your investment timeline:

Data source: Author’s calculations via investor.gov

Notice how the monthly requirement decreases significantly as your investment horizon extends. An investor with 40 years until retirement needs just $400 monthly to reach $2 million, while someone with only 20 years must commit $3,000 monthly. This dramatic difference illustrates why is now a good time to invest—the earlier you start, the smaller your required monthly contribution, and the less financial strain on your current budget.

Comparing Investment Approaches: Index Funds vs Individual Stocks

While S&P 500 ETFs offer simplicity and reliability, they come with one inherent limitation: they can only match market performance, never exceed it. Because an index fund follows the market, it cannot outperform it by definition.

For investors willing to invest additional research and effort, individual stock selection may provide a pathway to above-average returns. This approach demands more time spent analyzing companies, understanding industry dynamics, and monitoring portfolio performance. However, the potential reward can justify the additional work. The Motley Fool’s Stock Advisor service, for example, has delivered a 930% average return since inception, substantially outpacing the S&P 500’s 192% return over the same period. Historical examples like Netflix (recommending purchase on December 17, 2004, which would have grown a $1,000 investment to $470,587) and Nvidia (recommended April 15, 2005, turning $1,000 into $1,091,605) demonstrate the wealth-building potential of strategic stock selection when executed successfully.

The trade-off is clear: index funds offer stability and ease, while individual stocks require expertise but may deliver superior results. Your choice depends on your risk tolerance, available time for research, and financial objectives.

Building Your Wealth Strategy Starting Now

The decision to invest is often more important than achieving perfect timing or selecting the single best investment vehicle. With consistent monthly contributions and a commitment to remaining invested through market cycles, you can realistically accumulate millions of dollars over your investment lifetime. Whether you choose the straightforward approach of S&P 500 ETFs or pursue individual stock selection, the key variable is beginning your investment journey today. Every month you delay represents lost compound growth—a cost that becomes increasingly significant as years pass. The power of long-term investing lies not in predicting the market but in giving your capital decades to grow.