Nest Egg – The Magic 40 years ending in 1999

If the USA Plan had been in place for the years 1959 through 1999 and the taxpayer was making $60,000 a year and investing his 15% or $9,000 per year in S&P 500 indexed stocks he would have generated a $53.8 million dollar nest egg due to that period’s 17.4% per year rate of return. This illustrates the effect of the higher rates of return that taxpayers could achieve with a booming economy and stock market.