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Average return over the last 30 years for S&P500 is nearly 7%, now add in all of those reinvested dividends.
by overcast 7y ago
Average return over the last 30 years for S&P500 is nearly 7%, now add in all of those reinvested dividends.
- lm28469 7y agoAnd subtract the tax(es) depending on where you live.
- overcast 7y agoReally depends on the investment vehicle. My HRA(pre/post), and Roth(post) are cranking tax free.
- BeetleB 7y ago7% includes dividends and inflation adjustment.
- linuxftw 7y agoImpossible to actually achieve that return. Those indexes can add and remove companies at any time. Index funds never perform to the same level as an index, and that's without accounting for fees.
- extra88 7y agoVanguard 500 Index Fund Admiral Shares has a 0.04% expense ratio, it does perform at the same level as the S&P 500 Index. https://investor.vanguard.com/mutual-funds/profile/performance/vfiax https://investor.vanguard.com/mutual-funds/profile/performan...
- overcast 7y agoYep! That's my 401k, costs basically nothing to be in it.