> Or you could invest at a 7% profit rate Tips welcome.

jldugger · on March 22, 2016

Broad market indicies like S&P500 are regarded as having a 7 percent return after adjusting for inflation.

77pt77 · on March 22, 2016

According to http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/...

from 2006-2015 the SP500 had a geometric yearly mean return of 7.25%.

according to http://www.usinflationcalculator.com/inflation/current-infla...

The average inflation for that period is 1.9% so you get roughly 5%.

Still pretty decent.

jldugger · on March 22, 2016

We're talking longer than 10 years here. A better estimate might calculate the average 10 year return for every 10 year return period, and the standard deviation of that same data set. And then do that calculation for 30 years. I believe you end up with a higher average and smaller deviation at 30 than 10.