Investing Long Term in Indexes

Investing Long Term in Indexes

It is unfortunate that common retail folks including me, do not follow this, while Warren Buffet, Billionaire Ron Barron advise such long-term investments. 

Writing the book - "Trading Volatility Using the 50-30-20 Strategy" - was a very satisfying experience for us. Our next book is on passive investing in indexes.

As a part of research, we noted that from 1928 till 2016, S&P 500 index yielded a whopping 1014.11% return in 89 years.

This comes to an annualized return rate of 11.4% ROI

Based on these figures, we made a spreadsheet which you can download at the below link

As per the above spreadsheet, If one invests $5K per year, year after year, in S&P Index fund, you would collect $1.19 million at the end of 30th year.