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I don't think many people should expect to get into the top 1% of assets by just sticking money under a mattress. Presumably most would invest it and expect an
by viscanti 7y ago
I don't think many people should expect to get into the top 1% of assets by just sticking money under a mattress. Presumably most would invest it and expect an average rate of return of 7% or so from decades of investing. Eventually the investment grows more from compounding than new income.
- novok 7y agoThe compound interest of saving 19k/month @ %7/yr rate results in 10 million after 21 years, which is under half of 43 years.
- taneq 7y agoAnd you can get 7% per annum on a savings account... where, exactly? Back in 1985 via a time machine, maybe?
- jki275 7y agoS&P 500 index fund will probably average you around 7%.
- MR4D 7y agoI happened to look this up earlier today for a completely different reason - S&P results to date since 1/1/2000 is 5.6% assuming dividends were reinvested.
- jki275 7y agoAh, I was off a bit then. Thanks for the update.
- gitgudnubs 7y agoNo you weren't. That period includes one of the worst recessions in recorded economic history. The other guy either intentionally picked and chose his years, or is simply bad at research. An inflation adjusted long-term trend is over 7%.
- jki275 7y agoThat's a fair point, but I don't think it's ridiculous to choose the last 20 years as a discussion point.