![]() ![]() The lowest 12-month return was -43% (March 2008 to March 2009). From Januto December 31 st 2021, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 11.3% (source: Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The Standard & Poor's 500® (S&P 500®) for the 10 years ending December 31 st 2021, had an annual compounded rate of return of 13.6%, including reinvestment of dividends. The actual rate of return is largely dependent on the types of investments you select. It is often lower than the return earned before retirement due to more conservative investment choices to help insure a steady flow of income. This should also be an after-tax rate of return if the majority of your retirement savings is not in a tax-deferred account such as a 403(b), 401(k), 457(b), annuity or IRA. Rate of return during retirement This is the annual rate of return you expect from your savings and investments during retirement. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that investment funds and/or investment companies may charge. ![]() This includes the potential loss of principal on your investment. The actual rate of return on investments can vary widely over time, especially for long-term investments. It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. Savings accounts at a financial institution may pay as little as 0.25% or less but carry significantly lower risk of loss of principal balances. Rate of return before retirement This is the annual rate of return you expect from your retirement savings and investments.
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