• BILLY D 9:01 pm on October 15, 2009

    The ANNUALIZED rate of return of the S&P 500 index since 1926 (through December 2008) has been 9.26%. Actually investing in a mutual fund and getting that return can be difficult because there is an expense built into mutual funds.

    Better than a straight index fund for the S&P is a fund that covers more of the US market and perhaps includes some International. Look for funds like Vanguard (go to vanguard.com to set up an account) with low internal expense ratios and no front or back end load charges. Vanguard is also 12b1 fee free. They offer flexible investment choices and remember, investing is a long-term game. Be patient, but now is a great time to get in, in my opinion.