Submitted by yourgoldenstars t3_yiqiu0 in personalfinance
UltimateTraders t1_iujyhqu wrote
Maybe a safe index fund like the dow Jones 30. It's 30 companies and over 100 years it's average gain is about 6%
yourgoldenstars OP t1_iujzbum wrote
I will check into this.
But I'm not sure I understand it correctly. When I read this I think "Well the money isn't going to sit for 100 years. And a 6% interest gain after 100 years seems pretty bad." I don't know much about investing, am I reading this wrong?
Fllood99 t1_iuk04zw wrote
The “after 100 years” part is showing that the portfolio has existed for that long and averaged an annual return of 6%. That means after one year, the money you have in the account will grow 6% on average for however long you keep it in there
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