CWF Investment trivia of the day: Assuming that the stock markets continue to perform as they have in the long run, $1 million invested today to an index fund* should be worth (inflation adjusted) $4 million in 18 years. (Assuming 10% annual growth in the long run with 2% inflation. Does not include fees or taxes).Railwaymodeler wrote:Maria and I are setting aside one million for Skoda's future expenses, such as college and education.
* Index funds, long-term commitment, reinvest dividends. rinse and repeat. fire and forget. actively managed mutual fund's rarely perform better than the market, almost always worse when fees are considered. index funds never beat the market, but never underperform it either. bonds just shield you from inflation so your $1 million will be worth $1 million after adjusted for inflation, unless U.S. declares bankruptcy or the Mayan apocalypse ensues. Note that banks want to maximize their fees from you, which they these days try to make from management fees instead of performance fees because, as noted before, their actively managed fund performance usually sucks.
Disclaimer: Past performance is no indication of future performance. There are always risk involved in investing. This is not professional investment advice. Use with caution. May contain peanuts.