Bonds & Fees, Etc. Etc.
Target Date Funds
Fidelity Freedom 2005 through 2025 lifetime returns are 5.2% to 7.3%. Funds start with investing mostly in stocks and some bonds and convert to more bonds closer to the target date. Funds average down years 24% of the time or a negative return 1 in every 4 years.
*Sources: fidelity.com & finance.yahoo.com
Managed Asset Accounts
Managed by Brokerage Firms and available at different risk levels. Our reviews of competitor accounts show returns around 3% – 9% and annual management fees usually range from 1% – 2.5%. After 24 years at 2%, about 35% of the investment’s income goes to the firm, only 65% to the Investor.
Stocks vs. Treasury Bonds since 1928
If you invested in 1928, $100 in Treasury Bonds in 2021 is worth $8,527
If you invested in 1928, $100 in the S&P 500 in 2021 is worth $761,711
*http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/histretSP.html