LogFAQs > #980056277

PraetorXyn posted...

Doubtful. Particularly with inflation taken into account. You really have to beat 7% to even break even with inflation at 7%, for instance.

I have $500 auto-deposited into my Roth IRA every month, and then Ill manually put in $1000 or whatever makes up the difference manually when I get my tax return or some other time, so I hit the max each year. But I dont expect that thing to grow 200% or whatever.

When you look at people estimating annual S&P500 returns you'll see numbers between 7%-12%. Depending on the specific timeframe you pick. And the low side of 7% factors in inflation. So yes roughly 7% is safely your expected "real returns".

As much as inflation is talked about now, it's usually more like 3% or less each year. The federal government targets 2%.