Don’t Make Me Say I Told You So Growth of a Hypothetical $100,000 Investment (12/31/1999 - 12/31/2019) 0% 2% 4% 6% 8% 10% 139 $229,890 4.25% $324,363 6.06% Average Equity Investor Standard & Poor’s 500 Index Source: Dalbar, 2020 This is a hypothetical example for illustration purposes only. Actual investor results will vary. Now let’s look at the difference in dollars between $100,000 invested in the S&P 500 over that 20-year period vs. the returns for the average investor. Standard & Poor’s 500 Index Over a 20-year Period ending December 31, 2019 6.06% Average Annual Return Assumption: $100,000 investment over 20 years, compounded annually. 1 : 2 : 3 : 4 : 5 : 6 : 7 : 8 : 9 : 10 : 106,060.00 112,487.24 119,303.96 126,533.78 134,201.73 142,334.35 150,959.82 160,107.98 169,810.53 180,101.04 11 : 12 : 13 : 14 : 15 : 16 : 17 : 18 : 19 : 20 : 191,015.17 202,590.69 214,867.68 227,888.66 241,698.72 256,345.66 271,880.20 288,356.14 305,830.53 324,363.86 Final Investment Balance: $ 324,363 1 : 2 : 3 : 4 : 5 : 6 : 7 : 8 : 9 : 10 : Average Equity Fund Investor ending December 31, 2019 4.25% Average Annual Return Assumption: $100,000 investment over 20 years, compounded annually. 104,250.00 108,680.63 113,299.55 118,114.78 123,134.66 128,367.88 133,823.52 139,511.02 145,440.24 151,621.45 11 : 12 : 13 : 14 : 15 : 16 : 17 : 18 : 19 : 20 : 158,065.36 164,783.14 171,786.42 179,087.34 186,698.55 194,533.24 202,905.16 211,528.62 220,518.95 229,890.63 Final Investment Balance: $ 229,890 The S&P 500 is an unmanaged index comprised of 500 widely held securities considered to be representative of the stock market in general. You cannot directly invest in the S&P 500 index. Hypothetical example is for illustrative purposes only and is not representative of any performance of any product and are not guarantees of future results. Future performance cannot be guaranteed, and investment results will fluctuate with market conditions. Chapter 4: Common Investor Mistakes – and How to Avoid Them
