Frequently Asked Questions
Compound Annual Growth Rate (CAGR) is the annualized rate at which an investment grows from start to end value, assuming profits are reinvested. It smooths out year-to-year volatility to show a consistent annual rate.
The US stock market (S&P 500) has historically returned roughly 10% annually before inflation, or about 7% after inflation. No single year matches this — it averages out over decades.