About this video

• Video Title: How Fast Can $1,000,000 Double with Fidelity Index Funds?
• Channel: John's Money Adventures
• Speakers: John
• Duration: 16:14

Overview

This video explores how quickly an initial investment of $1 million can double to $2 million using various Fidelity index funds. The presenter, John, analyzes five different funds, ranking them from slowest to fastest in terms of growth potential, and projects the time it would take to reach the $2 million goal for each. The ultimate aim is to determine which fund can fastest generate an additional $1 million for a house purchase while keeping the original investment intact.

Key takeaways

• Investment Goal: John aims to double his $1 million investment to $2 million to afford a $1 million house, keeping the original principal intact.
• Methodology: The video ranks five Fidelity index funds from slowest to fastest, analyzing their investment strategy, growth potential, dividend yield, and projected time to reach the $2 million goal.
• Assumptions: Dividends are reinvested, no additional contributions are made, and taxes are disregarded due to the use of a Roth IRA.
• Fund Performance Varies: Different index funds have varying speeds of growth due to their investment focus (e.g., aggressive growth vs. balanced, large-cap vs. tech-heavy).
• Fastest Fund: The Fidelity NASDAQ Composite Index Fund (FNCMX) is identified as the fastest, with the potential to double $1 million in just 4 years.

The five Fidelity Index Funds discussed in the video, presented from slowest to fastest, are:

1. Fidelity Freedom Index 2060 (Ticker: FDKLX)
2. Fidelity Zero Large Cap Index Fund (Ticker: FZILX)
3. Fidelity 500 Index Fund (Ticker: FXAIX)
4. Fidelity US Sustainability Index Fund (Ticker: FITLX)
5. Fidelity NASDAQ Composite Index Fund (Ticker: FNCMX)