How Investing Just $100 a Month in Stocks Could Transform Your Wealth in 30 years
| Comparison of Stocks Returns with Other Investment Vehicles | |
|---|---|
| Asset | Approx. Average Historical Return |
| Stocks (S&P 500) | 10% |
| Corporate Bonds (Investment Grade) |
7% |
| Savings Accounts | 3.5% |
| U.S. Treasury Bonds (10-year) |
5% |
| U.S. Real Estate | 4.5% |
| Gold | 6.5% |
These historical return comparisons demonstrate why many financial advisors recommend a diversified portfolio that includes multiple asset classes. While stocks have provided the highest long-term returns, they also come with higher risk and volatility.
The time frame or investment horizon used to extrapolate past returns will vary depending on the specific period or years considered.
