Hypothetical Annual Rate of Return | American Funds

Hypothetical Annual Rate of Return

The expected annual return on your investments. Since 1926, the average annual total return for the S&P 500, an unmanaged index of large U.S. stocks, has been about 10%. Investments that offer the potential for higher rates of return also come with a higher degree of risk. If you plan on withdrawing your money within a short period of time, such as five years, you may want to choose a more conservative rate of return. This calculator assumes that your return is compounded annually and there are no new contributions to this account. Hypothetical rates of return are for illustrative purposes only and are not intended to portray actual results. Actual rates of return will vary over time. Past results are not predictive of results in future periods.