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What country are you in? As of 2015 the S&P 500's average annualized return was ~8% for the past 20 years. In terms of individual years, the benchmark nearly al
by dsacco 10y ago
What country are you in? As of 2015 the S&P 500's average annualized return was ~8% for the past 20 years. In terms of individual years, the benchmark nearly always beats inflation handily. If you're an American and you were passively investing in index funds, I don't understand how you could only have what you started with, or anything near that amount.
- ryandrake 10y agoLike I said, unlucky in that I had to stop investing and take money out during downturns (which typically happen at the bottom of the market). Not timing the market or "actively investing", you know--dealing with real life. The whole "you'll average 8%" (or 5% or whatever number gets quoted) is an idealized figure assuming you always buy and hold periodically and regularly and never need to stop or withdraw to deal with life's many curveballs.
- dsacco 10y agoAh, I understand now. I didn't understand your original comment when you were trying to point that out.
- FabHK 10y agoSince the 2000 peak, the S&P 500 has returned ~3% pa. Throw in the fact that many funds back then were charging some 2% pa, and transaction costs with some in and out, and you can easily have not much more than what you started with (particularly in real terms).