Understanding Investment Returns
Total return includes both capital appreciation and income (dividends, interest). CAGR (Compound Annual Growth Rate) shows your smoothed annual return, making it easy to compare investments of different durations.
Historical Benchmarks
- S&P 500: ~10% CAGR (1926-2025)
- Real Estate: ~3-4% CAGR (appreciation only)
- Bonds: ~5% CAGR (total return)
- Gold: ~7% CAGR (2000-2025)