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Originally Posted by smooth
No one is stopping anyone from privately investing in their future retirement. I do it already, and a number of you lament at how you are prevented from doing so in one post, yet brag about your earnings in another. Which is it? What has been your average rate of return?
Just to break even you need to achieve a 3.3 rate of return. You're going to suddently strike it rich because you get to put money into a special fund yourself? hmm, right]
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Of course no one is stopping us from investing. We just want to be able to invest the money we put into SS as well. To answer your question the SP500 has returned about 10% over time.
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Long-Term Investing Has Averaged Out Volatility
Despite market ups and downs, the historical average annual total return for the S&P 500 Index from Dec. 31, 1925–Dec. 31, 2003, was 10.4%. The first plot point represents the average annual total return from Dec. 31, 1925, through Dec. 31, 1926.LINK
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