What a 40 Year-Old Dollar Can Buy You

Chart of the Week for February 20-26, 2004

One of the great debates of investing is whether to invest in cash, bonds or stocks. The answer to that question often lies in the amount of time the money will be invested and/or the investor’s risk appetite. As can be seen from the chart, $1 invested over the 40 year period from 1963 to December 2003, would have returned 57.94% compounded. Over the same period, bonds saw a compounded return of 18.22%, cash 10.42% and inflation 5.98%. Stocks are measured by the S&P 500 Index, bonds by the US Long-term Government Bond Index and cash by the US 30-day Treasury Bill Index.

This illustration was compiled by information from outside sources. These companies are not affiliated with ICMA-RC. This information is being provided for educational purposes and is not intended to be construed as or relied upon as investment advice. ICMA-RC does not offer specific tax or legal advice. Individuals are advised to consider any new investment strategies carefully prior to implementing.

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The performance data quoted represents past performance. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data illustrated. For performance data current to the most recent month end, contact ICMA-RC Services, LLC by calling 800-669-7400 or by writing to 777 North Capitol Street, NE, Washington, DC 20002-4240. Para asistencia en Español llame al 800-669-8216. Performance data current to the most recent quarter end is available by visiting www.icmarc.org.