On Friday, September 23, 2016, the Los Angeles Dodgers put together an evening for the greatest broadcaster in the history of baseball, Vincent Edward Scully. Vin Scully Appreciation Night was filled with videos, images and speeches highlighting this man’s unbelievable career. Just before the first pitch was thrown, Vin stepped up to mic and said a few words, “I had a child’s dream” he started “and the grace of God not only gave me the fulfillment of the dream, he gave it for 67 years!”
My hope is that we all can look back on our careers with the same outlook as Vin Scully when we get to retirement age. This got me thinking of retirement and what can be accomplished over the course of 67 years. Hypothetically, if you had started to save and invest your money on Opening Day, April 18, 1950 (Vin’s first day on the job) you would have built a very nice nest egg by the time Vin reached retirement.
On April 18, 1950 the S&P 500 traded at $18.03.* Today, the S&P 500 trades at $2,164.** This comes out to a total return of 105,096% (with dividends reinvested). The average annual return over this time frame is 11.045% per year.
How do these numbers apply to you? This means that if you had invested $100 per month beginning in 1950, and averaged 11.045% annual return for 67 years, you would have approximately $17,174,000 today.
Many people fall into the trap of figuring out different ways to “get rich quick,” spending all of their time and energy trying to growth their wealth. Often these efforts produce minimal results. Instead, there is another way aimed at successfully growing your money over time. It’s called saving and investing in the stock market. Especially if you are young, you have many years ahead of you to save and invest your hard earned money. Starting this practice in your twenties or thirties gives you a huge advantage over those who wait until closer to retirement age to begin investing. TIME can be your best friend, as it allows you to enjoy the power of compounding interest. Keeping things simple will allow you to spend more of your time and energy focusing on the important things in life.
When asked how he wants to be remembered, Vin Scully replied, “I would like to be remembered, No. 1, as a good man. And, by being a good man, I mean as honest as possible. I’d like to be remembered as a great husband, a great father and a great grandfather. But I don’t really care about someone saying, ‘You’re the best broadcaster.’ That just happened. The others are far more important.” If we all were a bit more disciplined with our savings, invest what we can, and remember that time is our friend, we will all get to spend more time focusing on the things in life that are far more important.
By Elijah Souza
Investment Advisor Representative
*S&P 500 returns based on calculator from: https://dqydj.com/sp-500-return-calculator/
**Numbers of S&P based on close of business on Friday September 23, 2016.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
Investing involves risk including loss of principal. No strategy assures success or protects against loss.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which course of action may be appropriate for you, consult your financial advisor. No strategy assures success or protects against loss.
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