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RE: How to become a millionare
I started my 401 K in 2014 in 2015 my return was 25%. 2016 - 2018 my return has averaged out to 20%. This plan is on autopilot but I am realistic about history and the ups and downs of the market. I'm using 10% as a general point of reference it could be a little less 7% or 8%. But over the course of 5 years I dont thinks its unrealistic to get a return of 10%, I dont think that is too far fetched.
10% puts you in S&P500 territory before expenses. That makes it real but still a tough goal to beat. 3/4 of professional money managers don't beat the S&P. The reason behind that is that people love to make money but they hate losing it way more. That leads to diversification and ultimately to accepting less than the 10% in return for lower volatility. The more money people have at risk in their 401K, the more this appeals to them. Each 401K differs but most only offer a conservative portfolio in the first place. Some also offer only ones they get a kick back from. By the way you can see how your 401K plan compares to others at https://www.brightscope.com/
My 401 k is with prudential. With the recent bull market returns from investment accounts have been inflated. The law of averages and the inevitable bear market will cool down this hot market. Thank you for the information i will check out the link.