Investment Strategies: S&P 500 Yields $29.9 Million by 2024 with Diversification
400+ Words Refined into 4 Facts by AI • 1 source • 1h ago
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- Investing in the S&P 500 and diversifying into other asset classes can lead to higher long-term returns with lower risks.1
- An investment of $100,000 in the S&P 500 in 1970 could have grown to nearly $29.9 million by 2024 with reinvested dividends and capital gains.1
- By allocating 10% of your portfolio into large-cap value stocks, you could have gained an additional $2.2 million over your original investment by 2024.1
- The Merriman Financial Education Foundation calculated hypothetical results showing that small changes in investment strategy can yield significant gains.1
- The best strategy for a lifetime equity portfolio is based on extensive academic research, suggesting a simple formula: start with the S&P 500 and diversify into other asset classes through index funds. This approach has proven effective over decades.
- If an investor had placed a lump sum of $100,000 in the S&P 500 in 1970 and reinvested all dividends and capital gains, they would have accumulated nearly $29.9 million by the end of 2024.
- By allocating 90% of the investment to the S&P 500 and 10% to large-cap value stocks, the investor could have gained an additional $2.2 million over the original S&P 500 investment by the end of 2024.
- The Merriman Financial Education Foundation has calculated hypothetical results for four additional small steps that could enhance investment returns, each supported by substantial academic research.