Viewing a single comment thread. View all comments

foreman-541 t1_j5ezi1h wrote

Reply to comment by OG-Pine in LPT Request: turning 16 this year, what is something i should/shouldn’t do? by yelloroadintheusa

I assume 12% (avg return for S&P 500 since inception to 2021), and retire at 72

1

OG-Pine t1_j5fkjeo wrote

SPY since 93 has a CAGR of ~9.5% and US large cap since 72 ~10.22% (and this is without accounting for inflation)

You would need to be incredibly lucky to have a long term return of 12%, most people agree that 8% is a realistic return rate over a lifetime but you should still plan for 4-6% because you can’t know which end of the average you’ll fall in.

But yeah if you got 12% average for 56 years then you’d have a million with 2k put in today

1