How Investment Growth Works
Investment growth comes from two sources: your contributions (principal) and the returns generated on that money. Over long periods, compound returns can dwarf the original investment — a phenomenon often called "the snowball effect."
Historical Market Returns
| Asset Class | Avg. Annual Return (Historical) |
|---|---|
| US Stock Market (S&P 500) | ~10% nominal / ~7% real |
| Global Stocks | ~8–9% nominal |
| Bonds (US Treasury) | ~3–5% |
| Real Estate | ~7–10% (including appreciation + rent) |
| Savings Account (HYSA) | ~4–5% (current rates) |
Past performance does not guarantee future results. All investments carry risk.