THE NO-COMPROMISE RETIREMENT PLAN • 13
The answer may surprise you. It’s negative 1 percent. That’s right. For the entire decade, you lost about 1 percent on average per year.
That’s frightening data when you’re trying to grow and protect your retirement savings. As I mentioned, the experience over the rest of the century hasn’t been much better. Remember, from 2000 through the end of 2019, the S&P 500® has returned an average of 6 percent per year. Not terrible (at least you didn’t lose money), but also perhaps not enough to grow your account value in a meaningful way. And, remember, that’s your growth before you pay the fees inside your 401(k) or IRA and before you pay taxes. No one is going to successfully retire on an account that’s growing in the very low single digits. You need meaningful growth to fuel your account.
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