Written by Amy Legate-Wolfe at The Motley Fool Canada
Investing for a decade might feel like a long game. But it’s where the magic truly happens. Take the S&P 500, for example. Over any 10-year period since its inception, it has posted an average annual return of about 10% despite some ups and downs along the way. That means if you had invested $10,000 a decade ago, you’d be sitting on around $26,000 today — just by staying the course! Time really is the best friend of your portfolio, letting your investments ride out short-term market jitters and capitalize on long-term growth.
Now, let’s talk about the power of compounding. By reinvesting your returns over a decade, your money starts to earn money on itself, creating a snowball effect. Imagine getting dividends or interest, which then buys you more shares or bonds, which in turn generate even more returns. So, while a decade might sound long, it’s the…
