What is the total stock market return for 30 years?
Looking at the S&P 500 for the years 1993 to mid-2023, the average stock market return for the last 30 years is 9.90% (7.22% when adjusted for inflation). Some of this success can be attributed to the dot-com boom in the late 1990s (before the bust), which resulted in high return rates for five consecutive years.
Period (start-of-year to end-of-2023) | Average annual S&P 500 return |
---|---|
15 years (2009-2023) | 12.63% |
20 years (2004-2023) | 9.00% |
25 years (1999-2023) | 7.18% |
30 years (1994-2023) | 9.67% |
The S&P 500 returned 345% over the last two decades, compounding at 7.7% annually. But with dividends reinvested, the S&P 500 delivered a total return of 546% over the same period, compounding at 9.8% annually. Investors can get direct, inexpensive exposure to the index with a fund like the Vanguard S&P 500 ETF.
Stock Market Historical Returns
40 Years (1982 – 2022): 11.6% annual return. 30 Years (1992 – 2022): 9.64% annual return. 20 Years (2002 – 2022): 8.14% annual return. 10 Years (2012 – 2022): 12.74% annual return.
Stock market returns between 1960 and 2023
This is a return on investment of 47,073.47%, or 10.15% per year.
Historically, the stock market has an average annual rate of return between 10–12%. So if your $1 million is invested in good growth stock mutual funds, that means you could potentially live off of $100,000 to $120,000 each year without ever touching your one-million-dollar goose. But let's be even more conservative.
Based on the median income for Americans in this age bracket, $100K between 25-30 years old is pretty good; but you would need to increase your savings to reach your age 40 benchmark.” “The current level of your income makes a big difference in determining if you're on track for retirement,” added Cox.
Historically, the average annual return for stocks has been around 8-10%. The range of potential annual returns for a portfolio with 10% bonds and 90% stocks would likely be wider than a portfolio with 10% stocks and 90% bonds.
- High-yield savings accounts.
- Money market funds.
- Short-term certificates of deposit.
- Series I savings bonds.
- Treasury bills, notes, bonds and TIPS.
- Corporate bonds.
- Dividend-paying stocks.
- Preferred stocks.
With a $10,000 account, a good day might bring in a five percent gain, which is $500. However, day traders also need to consider fixed costs such as commissions charged by brokers. These commissions can eat into profits, and day traders need to earn enough to overcome these fees [2].
How much money do I need to invest to make $3 000 a month?
Imagine you wish to amass $3000 monthly from your investments, amounting to $36,000 annually. If you park your funds in a savings account offering a 2% annual interest rate, you'd need to inject roughly $1.8 million into the account.
Since it was expanded to include 500 stocks in 1957, the average annualized return in the S&P 500 is closer to 10.15%. That means the average annualized return in SPY is roughly 10%.
Think About This: $10,000 invested in the S&P 500 at the beginning of 2000 would have grown to $32,527 over 20 years — an average return of 6.07% per year.
If you're 70, you should keep 30% of your portfolio in stocks. However, with Americans living longer and longer, many financial planners are now recommending that the rule should be closer to 110 or 120 minus your age.
Investors in their 50s and 60s keep between 35% and 39% of their portfolio assets in U.S. stocks and about 8% in international stocks. Older investors in their 70s and over keep between 31% and 33% of their portfolio assets in U.S. stocks and between 5% and 7% in international stocks.
At age 60–69, consider a moderate portfolio (60% stock, 35% bonds, 5% cash/cash investments); 70–79, moderately conservative (40% stock, 50% bonds, 10% cash/cash investments); 80 and above, conservative (20% stock, 50% bonds, 30% cash/cash investments).
However, not a huge percentage of retirees end up having that much money. In fact, statistically, around 10% of retirees have $1 million or more in savings.
Let's say you consider yourself the typical retiree. Between you and your spouse, you currently have an annual income of $120,000. Based on the 80% principle, you can expect to need about $96,000 in annual income after you retire, which is $8,000 per month.
If you have more than $1 million saved in retirement accounts, you are in the top 3% of retirees. According to EBRI estimates based on the latest Federal Reserve Survey of Consumer Finances, 3.2% of retirees have over $1 million in their retirement accounts, while just 0.1% have $5 million or more.
If you have $400,000 in the bank you can retire early at age 62, but it will be tight. The good news is that if you can keep working for just five more years, you are on track for a potentially quite comfortable retirement by full retirement age.
Can I retire on 500k plus Social Security?
Most people in the U.S. retire with less than $1 million. $500,000 is a healthy nest egg to supplement Social Security and other income sources. Assuming a 4% withdrawal rate, $500,000 could provide $20,000/year of inflation-adjusted income.
Consider if an investor put their money in the S&P 500. Historically, it has averaged 11.5% returns between 1928 and 2022. In 6.4 years, their money would double, assuming these average returns.
If you have $25,000 in a high-yield savings account with a 5% annual percentage yield, or APY, that could amount to about $100 per month in income.
Annual Rate of Return | Years to Double |
---|---|
4% | 18 |
5% | 14.4 |
6% | 12 |
7% | 10.3 |
- Invest in stocks and stock funds.
- Consider indexed annuities.
- Leverage T-bills, bonds and savings accounts.
- Take advantage of 401(k) and IRA catch-up provisions.
- Extend your retirement age.
References
- https://talkmarkets.com/content/how-much-money-do-i-need-to-invest-to-make-3000-a-month?post=431352
- https://capex.com/en/overview/dow-jones-price-prediction
- https://www.fool.com/retirement/how-much-do-i-need/
- https://www.hcplive.com/view/the-dow-will-probably-hit-50000-by-2027
- https://www.franklintempleton.com/planning-and-learning/learn-about-investing/investing-principles/cost-of-timing-the-market
- https://www.fisdom.com/how-to-predict-stock-price-for-next-day/
- https://www.investopedia.com/ask/answers/difference-between-dow-jones-industrial-average-and-sp-500/
- https://www.schwab.com/learn/story/trying-out-futures-options-here-are-key-differences-vs-equities
- https://foolwealth.com/insights/are-you-in-the-top-3-of-retirees
- https://rjofutures.rjobrien.com/learning-center/futures-trading/trading-futures-for-a-living
- https://www.linkedin.com/pulse/tradovate-vs-ninjatrader-rackup-seo-5blef
- https://www.ramseysolutions.com/retirement/can-you-retire-on-1-million
- https://www.benzinga.com/money/best-futures-to-trade
- https://money.cnn.com/retirement/guide/investing_basics.moneymag/index7.htm
- https://money.usnews.com/money/retirement/articles/should-retirees-follow-the-100-minus-your-age-rule-for-stock-allocation
- https://dhan.co/futures/
- https://brainly.com/question/31625959
- https://www.samco.in/knowledge-center/articles/dow-theory/
- https://www.investopedia.com/terms/d/dowtheory.asp
- https://www.5paisa.com/stock-market-guide/derivatives-trading/about-futures-contract
- https://money.usnews.com/money/retirement/iras/articles/how-to-invest-for-retirement
- https://www.schwab.com/futures/what-are-futures
- https://gitnux.org/most-liquid-futures/
- https://www.statmuse.com/money/ask/what-is-the-highest-the-dow-jones-has-been-ever
- https://money.usnews.com/investing/articles/the-rule-of-72
- https://www.sofi.com/learn/content/good-return-on-investment/
- https://www.fidelity.com/learning-center/trading-investing/trading/avoiding-cash-trading-violations
- https://www.fool.com/investing/how-to-invest/stocks/good-time-to-buy-stocks/
- https://www.binance.com/en/square/post/1424550
- https://www.investopedia.com/articles/active-trading/032515/advantages-trading-futures-over-stocks.asp
- https://www.cityindex.com/en-uk/indices-trading/how-to-trade-dow/
- https://en.wikipedia.org/wiki/Dow_Jones_Industrial_Average
- https://www.investopedia.com/articles/active-trading/020216/five-advantages-futures-over-options.asp
- https://www.cnbc.com/us-markets/
- https://market-bulls.com/best-futures-traders-of-all-time/
- https://www.marketwatch.com/market-data/futures
- https://www.investopedia.com/articles/active-trading/070113/using-index-futures-predict-future.asp
- https://www.investopedia.com/terms/f/futures.asp
- https://www.firstrepublic.com/-/media/frb/documents/pdfs/pwm/brokerage/cash-trading-disclosures.pdf
- https://www.linkedin.com/pulse/futures-trading-strategies-quantifiedstrategies-yt6of
- https://www.schwab.com/futures/how-to-trade-futures
- https://www.cmegroup.com/trading/equity-index/files/EQ-159_DowJonesFinal.pdf
- https://www.fidelity.com/learning-center/trading-investing/trading/using-futures-as-indicator
- https://www.imf.org/en/Publications/WEO/Issues/2024/04/16/world-economic-outlook-april-2024
- https://www.shadowtrader.net/glossary/eighty-percent-rule/
- https://www.morningstar.com/markets/q2-update-2024-outlook-stock-market-economy
- https://vestedfinance.com/blog/us-stocks/dow-nasdaq-sp500-differences/
- https://rjofutures.rjobrien.com/learning-center/general-trading/how-to-trade-dow-jones-djia-futures
- https://www.smallcase.com/learn/what-is-dow-theory/
- https://www.angelone.in/knowledge-center/futures-and-options/futures-trading
- https://www.bankrate.com/investing/low-risk-investments/
- https://coinpriceforecast.com/dow-jones
- https://investor.apple.com/faq/default.aspx
- https://www.tradersmastermind.com/a-look-at-the-best-ever-trades-in-history/
- https://www.visualcapitalist.com/visualized-how-long-does-it-take-to-double-your-money/
- https://www.sofi.com/learn/content/average-stock-market-return/
- https://www.dukascopy.com/swiss/english/marketwatch/articles/top-10-most-successful-forex-traders-in-the-world/
- https://www.comparably.com/salaries/salaries-for-futures-trader
- https://www.linkedin.com/pulse/can-i-start-trading-100-liquiditytradeideas-uvqaf
- https://www.investopedia.com/articles/optioninvestor/09/be-a-better-futures-trader.asp
- https://www.ampfutures.com/education/futures-vs-stocks
- https://themilitarywallet.com/best-careers-to-get-rich/
- https://finance.yahoo.com/gainers/
- https://market-bulls.com/richest-futures-traders/
- https://www.ironbeam.com/no-account-minimums-at-ironbeam-heres-what-we-recommend-for-trading-micro-and-mini-futures-contracts/
- https://www.investopedia.com/terms/f/futuresexchange.asp
- https://time.com/personal-finance/article/us-stock-market-crashes/
- https://www.schwab.com/learn/story/weekly-traders-outlook
- https://www.schwab.com/futures/faqs
- https://www.coinbase.com/learn/futures/benefits-of-taxation-on-crypto-futures-trading
- https://www.investopedia.com/terms/d/djia.asp
- https://www.schwab.com/futures/dow-industrial-mini
- https://finance.yahoo.com/news/retire-62-400-000-401-154948217.html
- https://www.investopedia.com/articles/active-trading/090215/analyzing-5-most-liquid-commodity-futures.asp
- https://www.businessinsider.com/personal-finance/cash-vs-margin-account
- https://money.usnews.com/money/retirement/articles/how-can-i-earn-100-200-or-500-per-month-in-guaranteed-income-in-retirement
- https://www.nasdaq.com/articles/how-much-money-needed-start-trading-futures-2016-02-19
- https://www.investopedia.com/how-to-trade-futures-5214571
- https://www.reuters.com/markets/us/
- https://www.fool.com/investing/how-to-invest/stocks/futures-trading/how-much-money-do-you-need/
- https://www.investopedia.com/ask/answers/060115/how-do-i-calculate-my-yeartodate-ytd-return-my-portfolio.asp
- https://en.wikipedia.org/wiki/United_States_bear_market_of_2007%E2%80%932009
- https://www.investopedia.com/ask/answers/031015/how-risky-are-futures.asp
- https://www.nasdaq.com/articles/heres-the-average-stock-market-return-over-the-last-20-years
- https://www.linkedin.com/pulse/top-best-lowest-commission-futures-broker-develop-business-6f1oc
- https://tradeproacademy.com/how-much-money-do-you-need-to-start-trading-futures/
- https://www.schwab.com/retirement-portfolio
- https://www.nasdaq.com/education/stock-market-will-eventually-go-up
- https://en.wikipedia.org/wiki/Dow_futures
- https://www.approachfp.com/retire-on-500k/
- https://www.forbes.com/advisor/investing/stock-market-outlook-and-forecast/
- https://ninjatrader.com/futures/
- https://poe.com/poeknowledge/1512928000358234
- https://www.cmegroup.com/education/courses/understanding-the-benefits-of-futures/the-benefits-of-day-trading-futures.html
- https://www.marketwatch.com/investing/index/djia
- https://www.earn2trade.com/blog/best-time-to-trade/
- https://ninjatrader.com/futures/why-trade-futures/futures-vs-stocks/
- https://www.webull.com/help/faq/351-What-s-the-difference-between-margin-and-cash-account
- https://support.tastytrade.com/support/s/solutions/articles/43000435231
- https://www.indiainfoline.com/knowledge-center/derivatives/how-to-trade-in-futures-and-options
- https://kwbwealth.com/blogs/what-could-cause-the-dow-to-reach-50000
- https://www.motilaloswal.com/blog-details/which-is-more-risky-futures-trading-or-options-trading/20719
- https://www.empower.com/the-currency/money/average-portfolio-mix-by-investor-age
- https://www.schwab.com/learn/story/introduction-to-pattern-day-trader-rules
- https://www.timothysykes.com/blog/how-to-day-trade-without-25k/
- https://en.wikipedia.org/wiki/Dow_theory
- https://bullishbears.com/futures-trading-hours/
- https://www.tastylive.com/concepts-strategies/what-is-spdr-spy-etf-how-it-works
- https://www.nerdwallet.com/article/investing/average-stock-market-return
- https://finance.yahoo.com/news/many-americans-retire-million-dollars-140019814.html
- https://www.smallcase.com/learn/types-of-stock-market-trading/
- https://www.rocketmoney.com/learn/investing/average-stock-market-return
- https://www.fool.com/the-ascent/buying-stocks/ninjatrader-review/
- https://corporatefinanceinstitute.com/resources/equities/dow-30/
- https://www.litefinance.org/blog/analysts-opinions/dow-jones-forecast/
- https://www.officialdata.org/us/stocks/s-p-500/1960
- https://www.nasdaq.com/articles/most-millennials-have-less-than-$100k-in-retirement-savings:-should-you-be-concerned
- https://www.linkedin.com/pulse/what-type-trading-should-beginner-start-prince-john-paul-rpige