Starting in 2007, invest $10,000 at the beginning of each year in the S&P 500 (including dividends).
In 2008, it fell 37%, and the $20,000 in the account shrank to $13,000.
Two people went their separate ways that year.
The one who stopped investing regularly and switched to holding cash:
End of 2009: Contributions $30,000 → $26,000
End of 2012: Contributions $60,000 → $62,000
End of 2016: Contributions $100,000 → $118,000
End of 2020: Contributions $140,000 → $189,000
End of 2024: Contributions $180,000 → $275,000
The one who gritted their teeth and kept investing regularly:
End of 2009: Contributions $30,000 → $29,000
End of 2012: Contributions $60,000 → $77,000
End of 2016: Contributions $100,000 → $183,000
End of 2020: Contributions $140,000 → $393,000
End of 2024: Contributions $180,000 → $712,000
Both put in $180,000, but the difference was $437,000.
The turning point was not stopping in early 2009.
Based on the S&P 500’s annual total returns including dividends, with investments made at the beginning of each year. Cash earns 0% interest. Taxes and exchange rates are excluded. Past performance does not indicate future results and this is not investment advice.
#定投 #标普500 #USStocks
In 2008, it fell 37%, and the $20,000 in the account shrank to $13,000.
Two people went their separate ways that year.
The one who stopped investing regularly and switched to holding cash:
End of 2009: Contributions $30,000 → $26,000
End of 2012: Contributions $60,000 → $62,000
End of 2016: Contributions $100,000 → $118,000
End of 2020: Contributions $140,000 → $189,000
End of 2024: Contributions $180,000 → $275,000
The one who gritted their teeth and kept investing regularly:
End of 2009: Contributions $30,000 → $29,000
End of 2012: Contributions $60,000 → $77,000
End of 2016: Contributions $100,000 → $183,000
End of 2020: Contributions $140,000 → $393,000
End of 2024: Contributions $180,000 → $712,000
Both put in $180,000, but the difference was $437,000.
The turning point was not stopping in early 2009.
Based on the S&P 500’s annual total returns including dividends, with investments made at the beginning of each year. Cash earns 0% interest. Taxes and exchange rates are excluded. Past performance does not indicate future results and this is not investment advice.
#定投 #标普500 #USStocks