3 ms·

That comes out to about 12% per year, compounded. Makes sense given the huge multi-decade bull market that began in the early 80s (2006 - 30 years = 1976). But

That comes out to about 12% per year, compounded. Makes sense given the huge multi-decade bull market that began in the early 80s (2006 - 30 years = 1976). But certainly not something you can rely on. For comparison, with a 5% annual return, you get $64k. With an 8% annual return, you get $150k.

maaku 11y ago
S&P gains since inception are on the order of 11%. It is something you can rely upon (see: Trinity study on portfolio survivability https://en.wikipedia.org/wiki/Trinity_study https://en.wikipedia.org/wiki/Trinity_study)