you will have $117,187.69 after 25 years if you invest $1000 a year into S&P500 and if you do not withdraw any amount direct answer to your question ” How much money will l have if i invest $1000 a year in the s&p500 for 25yrs ? “
here is how we came up with that number. S&P500 has given 10.5% annualized return since it’s inception in 1953 till 2021. This includes World war , Major Recessions , Energy issues around the world and One of the biggest pandemic world has ever faced which is Covid-19. ( As 2022 is not over year , we have not considered this year).
Here how it will look Every year with compounding interest on your investment if you invest $1000 a year in the S&P500 for 25 years.
How much money will l have if i invest $1000 a year in the s&p500 for 25yrs ?
| Year | Investment | Earnings | Balance |
|---|---|---|---|
| 1 | $1,000.00 | $105.00 | $1,105.00 |
| 2 | $1,000.00 | $221.03 | $2,326.03 |
| 3 | $1,000.00 | $349.23 | $3,675.26 |
| 4 | $1,000.00 | $490.90 | $5,166.16 |
| 5 | $1,000.00 | $647.45 | $6,813.61 |
| 6 | $1,000.00 | $820.43 | $8,634.04 |
| 7 | $1,000.00 | $1,011.57 | $10,645.61 |
| 8 | $1,000.00 | $1,222.79 | $12,868.40 |
| 9 | $1,000.00 | $1,456.18 | $15,324.58 |
| 10 | $1,000.00 | $1,714.08 | $18,038.66 |
| 11 | $1,000.00 | $1,999.06 | $21,037.72 |
| 12 | $1,000.00 | $2,313.96 | $24,351.68 |
| 13 | $1,000.00 | $2,661.93 | $28,013.61 |
| 14 | $1,000.00 | $3,046.43 | $32,060.04 |
| 15 | $1,000.00 | $3,471.30 | $36,531.34 |
| 16 | $1,000.00 | $3,940.79 | $41,472.13 |
| 17 | $1,000.00 | $4,459.57 | $46,931.70 |
| 18 | $1,000.00 | $5,032.83 | $52,964.53 |
| 19 | $1,000.00 | $5,666.28 | $59,630.81 |
| 20 | $1,000.00 | $6,366.24 | $66,997.05 |
| 21 | $1,000.00 | $7,139.69 | $75,136.74 |
| 22 | $1,000.00 | $7,994.36 | $84,131.10 |
| 23 | $1,000.00 | $8,938.77 | $94,069.87 |
| 24 | $1,000.00 | $9,982.34 | $105,052.21 |
| 25 | $1,000.00 | $11,135.48 | $117,187.69 |
If you are thinking wait a minute , Wait a minute S&P500 is such a stable investment baby Why not add more ! well sure if you invest $10,000 in S&P500 a year for 25 years you will retire with umbrella drinks 🍹 on your hands as you will have $1.1+ Million USD after 25 years.
Now this investment return is quite simplified , let’s make it more fun, what if , if you keep putting $1000 a year in S&P500 + you invest $1000 more during every market crash and S&P500 dropped more then 10% in last 25 years. Which happened 12 times in last 25 years. See the table data below.
“Buying the dip” yes this word definitely hurts when market is going down but hey as some genius told “Fortune favors the brave”.
So Additional $1000 for every market more then 10% (12 times in last 25 years ) will be resulting in as much as $300,000 After 25 years.
How much money will l have if i invest $1000 a year in the s&p500 for 25yrs ?
Answer is : $300,000
Do follow us on twitter , We tweet about money.
