Annual Percentage Increases over 50 Years
We looked at percentage increases over a fifty year time period. These were NOT compounded.
Our starting point was 31 December 1966 which showed the average price at $21,360.
Half of that number is $10,680. That would be a 50% rate of return. However, measured in 2018, all we need this year would be to produce $10,680. Over 50 years 10,680 per year would yield $534,000. That’s a significant sum. But, it loses its significance when we take into consideration compounding, inflation etc.
This is just a very simple math exercise.
Effectively, it works better on shorter time periods.
Brian Madigan LL.B., Broker
