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Assuming someone bought in at the absolute bottom of the market in 2008 and has continued to hold for 11 years, fund symbol SPY has yielded 6.5% per year before

Assuming someone bought in at the absolute bottom of the market in 2008 and has continued to hold for 11 years, fund symbol SPY has yielded 6.5% per year before inflation. The median net worth in the USA is $50,000, inclusive of real estate wealth which is a bit illiquid. Assuming the median citizen puts in $50,000 in 2008, that person would receive $3,250 in pre-tax wealth per year. This is barely enough to put a low quality roof over family members' heads in Vietnam, let alone the USA. And we haven't talked about food, transport, or health insurance as well. So then, I don't think it's sufficient to say that the median citizen can expect to gain very much from the products of asset ownership.

WalterBright 7y ago
SPY has a dividend yield of 1.85%, for a total return of 6.5+1.85 = 8.35%. 11 years of that compounded turns $50,000 into $120,805. Pretty darn decent for doing literally nothing but being an owner.
- quaquaqua1 7y ago
  Assuming you absolutely do not touch the money, and cash out at the correct time after 11 years. I understand that the income is passive, but you do have to monitor the markets to make sure you don't get caught during a downturn. For me, I would rather invest my time into my career as that money is more safe in the form of cash income than it is in the form of a portfolio. Just my opinion :)
  - WalterBright 7y ago
    > Assuming you absolutely do not touch the money, If you spend it, you're not investing it. > and cash out at the correct time after 11 years. You'd be making bank regardless of when you cashed out. > to make sure you don't get caught during a downturn I ride the downturns down, and back up the other side. That's how buy and hold, hold, hold, hold works. Timing is for fools. > I would rather If you would rather not invest in stocks, that's your choice, but it doesn't justify complaining about the "ownership class" that does.

WalterBright 7y ago

SPY has a dividend yield of 1.85%, for a total return of 6.5+1.85 = 8.35%. 11 years of that compounded turns $50,000 into $120,805. Pretty darn decent for doing literally nothing but being an owner.

quaquaqua1 7y ago
Assuming you absolutely do not touch the money, and cash out at the correct time after 11 years. I understand that the income is passive, but you do have to monitor the markets to make sure you don't get caught during a downturn. For me, I would rather invest my time into my career as that money is more safe in the form of cash income than it is in the form of a portfolio. Just my opinion :)
- WalterBright 7y ago
  > Assuming you absolutely do not touch the money, If you spend it, you're not investing it. > and cash out at the correct time after 11 years. You'd be making bank regardless of when you cashed out. > to make sure you don't get caught during a downturn I ride the downturns down, and back up the other side. That's how buy and hold, hold, hold, hold works. Timing is for fools. > I would rather If you would rather not invest in stocks, that's your choice, but it doesn't justify complaining about the "ownership class" that does.