Now, We just gave you a small illustration in the last post on average vs. actual rate of return. This is a 40 year history of S&P 500. As you can see the average rate of return is over 1% higher than the actual rate of return. It’s only 1% so what’s the big deal right? When you compound that extra interest over 40 years it would show over $300k more as the account value and this does not include fees. This is the figure that you would be most likely be presented with which is a big difference in money!
Listen to the “Half Hour of Power” tomorrow morning for more details.
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