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Which real world financial instrument would give you that 8% interest?
by srockets 2y ago
Which real world financial instrument would give you that 8% interest?
- deleted 2y ago[deleted]
- mulmen 2y agoBasically any S&P 500 index fund [1] averages over 8% return over the trailing 15 years, even inflation adjusted [2]. Using [3] October 2009 to present gives an annualized return of 13.763% and going back 20 years to include the great recession returns 12.06%. Post-tax current-day value scenarios: Starting in 2004 (20Y): $500.00/mo: $418,349.29 $2,500.00/mo: $2,091,746.42 Starting in 2009 (15Y): $500.00/mo: $252,413.58 $2,500.00/mo: $1,262,067.88 [1]: https://www.financecharts.com/etfs/SPY/performance/total-return-cagr https://www.financecharts.com/etfs/SPY/performance/total-ret... [2]: https://dqydj.com/sp-500-return-calculator/ https://dqydj.com/sp-500-return-calculator/ [3]: https://dqydj.com/sp-500-periodic-reinvestment-calculator-dividends/ https://dqydj.com/sp-500-periodic-reinvestment-calculator-di...
- srockets 2y agoThat's not guaranteed, and not how you save for a fixed goal. I don't know of any lower-risk and higher-interest alternative to the 30-years-fixed that is currently offered to US consumers, and based of the above answer, neither do you.