Building wealth through investing requires understanding risk, return, and the mathematics of compound growth. Our investment calculators help you model different strategies, estimate future portfolio values, and make informed decisions about asset allocation and contributions.
The S&P 500 has historically returned about 10% annually before inflation and roughly 7% after inflation, based on data since 1926. Individual years vary dramatically, but long-term investors who stay invested typically capture these averages.
Dollar-cost averaging (DCA) invests a fixed amount at regular intervals regardless of price. When prices are low, you buy more shares; when high, fewer. Over time, this produces an average cost per share below the average price—reducing the impact of market timing risk.
Fees compound against you just as returns compound for you. A 1% annual fee on a $100,000 portfolio earning 7% annually reduces your final balance by about 20% over 30 years versus a 0% fee fund. Index funds typically charge 0.03–0.20%—far less than actively managed funds.
Asset allocation divides investments among asset classes (stocks, bonds, real estate, cash) based on risk tolerance and time horizon. Stocks offer higher long-term returns but more volatility; bonds provide stability. Rebalancing periodically keeps allocation aligned with goals.
Both pool investor money and provide diversification. ETFs trade intraday like stocks and typically have lower expense ratios. Mutual funds trade once daily at NAV. For long-term investors, low-cost index ETFs and index mutual funds are effectively interchangeable.