Over the next 20 years that will likely return closer to 7-9%, but if you don't want or need those "extra dollars" I can give you an Account to transfer them to...
(Do bear in mind that you should rebalance these Fund distributions every couple of years to maintain the (120-your age)% in the Stock fund)...
Growth funds.
As a mutual fund for over 25 years. I recommend a balanced
fund with a split of 65 stocks and 35 bonds. This kind of fund
will give you a return of 8% or better over the long run.
Vanguard Wellington fund (VWELX) is one of the best.
The actual real return of the S&P 500 is 7% annually from 1950 to 2009 (source: http://www.simplestockinvesting.com/SP50... Adding in a bit of safety (say 20% in a AAA bond fund) should give you 6% or close to it.
adjusted for inflation the s&p500 has returned 9% after inflation on average over the last 60 years.
Over the long term a 60% stock and 40% bond portfolio will easily earn 6% real return assuming of course the world doesn't end in the mean time.
http://www.moneychimp.com/features/marke...
When you find a legitimate 6% investment please post for the rest of us to enjoy.
I'm 30 and I have created a nest egg that I want to grow for the next 20 years. Inflation will probably be 3-4% in the next 20 years. A real return of 6% would be ideal for me. What should I put my money into?
