I came across this website that stated $10,00 invested in 1980 would be worth $760,000 as of Feb. 1, 2018. Does that sound correct? https://www.fool.com/investing/2018/02/08/heres-what-a-10000-investment-in-an-sp-500-index-f.aspx
They stated the following "To illustrate this, let's say that you had invested $10,000 in a low-cost S&P 500 index fund in 1980. Since Jan. 1, 1980, the S&P 500 index has generated a total return of approximately 7,670% as of this writing. This translates to a 12.1% annualized rate of return.
Assuming an expense ratio of 0.1% on your index fund (you can find even lower costs now), this means that a $10,000 investment would have turned into just over $760,000 as of Feb. 1, 2018."
I ran the numbers by this website https://dqydj.com/sp-500-return-calculator/ using Feb 1980 to Feb 2018 inflation adjusted
- Total S&P 500 Return 643.459%
- Annualized S&P 500 Return 5.421%
- Total S&P 500 Return (Dividends Reinvested) 1914.994%
- Annualized S&P 500 Return (Dividends Reinvested) 8.224%
I am just curious if I am using the calculator correctly or if that article is wrong.
Submitted March 04, 2019 at 07:32PM by whoframed https://ift.tt/2tRUMvw
