The average, diversified investor—after subtracting out management fees, commissions, and other expenses—earns a 5% annualized return on their investments over time. This accounts for the historic long-term average of about 6% compounded returns for a balanced stock/bond portfolio, minus the average fee/commission of 1% per year. That equals out to a 5% annualized return. A 5% return will turn every $100,000 into about $411,000 over 30 years.
That's not bad—it's average. But you can do better. Much better. The typical Tudor Investor is able to save the fees and generate a 12% annualized growth rate. That type of return results in taking the same $100,000—and growing it to $2,675,000over the same time frame.
That's an 85% difference.
With smart investing, you could have almost 6.5 times the average retirement account