Is a return of 6.7% over the last 10 yrs bad?

[SteveHarris]

I hope the title says it all. I think this rate of return sounds bad any way you look at it. Thanks.What is the name of your state?

 

[justalayman]

hopefully you mean 6.7% per year. Even with that it isn;t much better than a bank savings account.

 

[FlyingRon]

Depends what the 6.7% return was from. Actually for ten years, there were some bad stock market years in there (of course there were some good ones as well).

Justa: let me know what bank you have that's giving you 6% on savings. The interest rates are beginning to come back up now, but they aren't hitting that number (and they were much lower a year ago, I thought the 2% or so ING was giving was better than nothing).

 

[BoredAtty]

Depends what the 6.7% return was from. Actually for ten years, there were some bad stock market years in there (of course there were some good ones as well).

Justa: let me know what bank you have that's giving you 6% on savings. The interest rates are beginning to come back up now, but they aren't hitting that number (and they were much lower a year ago, I thought the 2% or so ING was giving was better than nothing).

Some banks are giving around 5% APY (I have an HSBC account currently at 5.05%). I haven't seen any near 6.7%.

SteveHarris, if you only got 6.7% over a ten year period, that is not good. If you got 6.7% on average per year, that is not bad.

 

[rjordan392]

I say its not good at all. You made 1.7 percent over the average return of a cd. When you invest in stocks, you are taking a much higher risk. So you deserve a much higher return. But as another said, there can be some bad years; that goes with the risks. You can cut down on some of the risks by staying on top of analylists projections of your stocks, especially when earnings are projected to drop. So if you made 6.7 percent on average for the last ten years, I think you would have done better with cd's due to the compounding effect and with very little risk.