How Much Does the S&P 500 Return Annually?

How Much Does the S&P 500 Return Annually?

How many times have you read or heard that the S&P 500 returns 10% per year? The actual average return -- after adjusting for inflation, reinvesting dividends, and assuming you pay no taxes-- is almost half that. How is the oft-quoted figure promising 10% average annual returns so far off?