16th Post - Did the S&P500 really get a 12% average return?

Yes, The S&P500 really did get a 12% average return if you look at the past 30 years.

In that case, are all the people who say that 12% is not realistic liars?

No, they are not liars. Neither side of the 12% debate are liars. Here's why:

s&p 500

31 Year Return
22.17134386
22.09178
2018
5.11%
1.0511
1.105
2017
21.83%
1.2183
1.105
2016
11.96%
1.1196
1.105
2015
1.38%
1.0138
1.105
2014
13.69%
1.1369
1.105
2013
32.39%
1.3239
1.105
2012
16.00%
1.16
1.105
2011
2.11%
1.0211
1.105
2010
15.06%
1.1506
1.105
2009
26.46%
1.2646
1.105
2008
-37.00%
0.63
1.105
2007
5.49%
1.0549
1.105
2006
15.79%
1.1579
1.105
2005
4.91%
1.0491
1.105
2004
10.88%
1.1088
1.105
2003
28.68%
1.2868
1.105
2002
-22.10%
0.779
1.105
2001
-11.89%
0.8811
1.105
2000
-9.10%
0.909
1.105
1999
21.04%
1.2104
1.105
1998
28.58%
1.2858
1.105
1997
33.36%
1.3336
1.105
1996
22.96%
1.2296
1.105
1995
37.58%
1.3758
1.105
1994
1.32%
1.0132
1.105
1993
10.08%
1.1008
1.105
1992
7.62%
1.0762
1.105
1991
30.47%
1.3047
1.105
1990
-3.10%
0.969
1.105
1989
31.69%
1.3169
1.105
1988
16.61%
1.1661
1.105

This table shows that if I started with $1 in 1988, I would have $22.17 by 2018 (assuming no fees, no capital gains taxes, and no taxes when I dip into my investment account). 

And if I started with $1 in 1988 in an investment that gave me 10.5% every single year, I would have $22.09 (same assumptions) in 2018. 

So the 12% annual average of the S&P500 is really equal to getting 10.5% every year.

Now how much you actually get will depend on other factors like taxes and fees.

To set an appointment with me for a free first meeting information session/ consultation, email me at jtran@greatwayfinancial.ca