I'm new to investing: is it reasonable to expect a 7% return in the long term??

Question

I'm new to investing: is it reasonable to expect a 7% return in the long term??

Answer 1

This is a little dated, but I recall these numbers from back then to be about close to accurate if not accurate.

1926-1996 Average annual rates of return

             Small Stocks 12.5% (Russel 2000)

             Real Estate  11.1%

             DJI          10.0% (DJIA)

             Bonds         5.2% (Corp Bonds)

             T-Bills       3.7%

             Inflation     3.1%.

of course these numbers will be LOWER as of 2002, then again from -2006-2008.

US history data only.

Answer 2

practice here, 7% is not acceptable.. http://www.updown.com/contest-home.do?id...

Answer 3

That should be bare minimum but if you plan well and keep your expectation low you will see good benefits

Answer 4

Yes.  Warren Buffet projects the SP500 will grow on average 6% for the next 50 years.  The U.S. economy has been slowing down since the mid 80s so don't expect the same rate of growth that the U.S. had between the Great Depression and the mid 80s.

Answer 5

In general, you should be able to double your money every 10 years. If not, something is wrong.