This Investing Mistake Cuts Returns in Half
The Money with Katie Show
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Why the Average Investor Should Not Bank on 10% Annualized Returns
While the stock market returns about 10% per year on average before adjusting for inflation, the average investor will only get about half that. For the years between 1999 and 2019, the S&P 500 averaged 6.06% per year. But the average equity investor did not get 6.06%. They only earned an annualized average return of 4.25%. That substantially changes our projections for the future.
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