"It is highly unlikely that an index fund could turn $1,000 into $100,000 before they retire. Historically US stock indices have returned approximately 10%. If $1,000 compounds at 10% per year, it will be just under $73,000 in 45 years. (Starting work at age 20 and retiring at 65 is 45 years). Note that historically inflation has been around 2%, meaning that stocks return roughly 8% after inflation. If inflation spikes to something like 7% for a decade, reaching $100,000 would happen a whole lot faster.

Most retirement planning involves subsequent investments. By investing $1,000 per year, you can reach $100,000 in 25 years.

The truth is, building substantial wealth before retiring requires a more aggressive investment plan. By definition, most definition in an index average underperform the top stocks. To achieve 15-25% returns, smart investors take concentrated positions in a handful of individual stocks. Let me be clear, this approach can bring significantly more risk. Fortunately, there are plenty of investment advisors who engage in active investment management, and performance-focused investing strategies."