If you entered the market on January 1st, 2000, and made yearly contributions, you’d achieve a nominal CAGR of 8%

by carnageta

The stretch from 2000-2010 is one of the worst in stock market history. Even so, the returns you would have garnered up to this date are nothing to be ashamed of.

Lets assume you started your investment journey on January 1st, 2000, and made a lump sum of 12,0000 into the s&p500 for the year.

That 12,000 lump-sum from January 1st, 2000, to December 31st, 2018 would have went on to average a CAGR of 4.83%, and would be worth ($29,404).

On January 1st, 2001 you make another 12,000 lump-sum. That amount would have went on to average a CAGR of 5.66% by December 31st, 2018, and would be worth ($32,327).

On January 1st, 2002 you make another 12,000 lump-sum. That amount would have went on to average a CAGR of 6.81% by December 31st, 2018, and would be worth ($36,777).

On January 1st, 2003 you make another 12,000 lump-sum. That amount would have went on to average a CAGR of 8.95% by December 31st, 2018, and would be worth ($47,295).

We are primarily funded by readers. Please subscribe and donate to support us!

On January 1st, 2004 you make another 12,000 lump-sum. That amount would have went on to average a CAGR of 7.74% by December 31st, 2018, and would be worth ($36,714).

And so on and so on..

On January 1st, 2018 you make another 12,000 lump-sum. That amount would have went on to average a CAGR of -4.42% by December 31st, 2018, and would be worth ($11,496).

www.moneychimp.com/features/market_cagr.htm

In the 19 year span between January 1st 2000 and December 21st, 2019, you would have achieved a total CAGR of 153.17. Divide that by the number of years (19) and you get 8.06%. Your total investment at the start of 2019 would be worth over $500,000 ($228,000 being the money you invested).

Pretty interesting way to look at it.

Note: all are nominal values.

Views:

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.