Rate of Return – One Hundred and Twenty 40-year Periods of the S&P 500
This is a compilation of the ending values of $1 dollar invested for 40-year periods in stocks (S&P 500 indexed stocks). The average rate of return for all 120 40-year periods combined is a 9.8% rate of return. That rate is increased by 2.2% when dividends received during each year is reinvested and accumulated in the sum total return, That results in a projected 12% return on investments in the future.
See the following schedules that support the Prosperity Commission’s USA Plan proposal.
• Retirement Benefits Compared
• Computation of America’s Net Worth of all “USA Accounts” 40 years after enactment
• Invest in Stocks Not Bonds
• Rate of Return on the S&P 500 Stock Index in 40-year Increments from 1871 to 2011
• The Magic 40 years ending in 1999
• Computation of Nest Egg and Monthly Check at Various Income Levels
• Computation of Nest Egg and Monthly Retirement Check for Average Household Income of $50,000