Over the past 50 years, the S&P 500 index with dividends reinvested had an annualized rate of return of 12% and an inflation-adjusted return of 8% (https://dqydj.com/sp-500-return-calculator/). It's effectively the same over the past 30 years, and 7.4% over the past 100 years. Being too conservative in your assumptions may feel "safe," but it also has real costs: you're giving up consumption today. All the travel you don't do in your 30s and 40s is travel you most likely can't do in your 80s and 90s (or insert any other hobby/leisure activity).
Statistics: Posted by HKexpat — Tue Oct 22, 2024 1:52 am