What If You Had Invested $100 Per Week Into The S&P 500?

What if you had consistently invested just $100 per week into the S&P 500 for the past 20 years? How much would your portfolio be worth today? And how would inflation impact your real returns?

And what type of returns can you expect from the S&P 500 going forward? In this video, we'll break it all down and see what happens when you stick with a simple, consistent investment strategy through all the markets ups and downs. The results might surprise you.

Historically, the S&P 500 has grown at an average rate of about 10% per year. But of course, inflation eats into those gains, bringing the real return closer to 7% annually. Over the past two decades, this has remained fairly accurate, even as the market faced a litany of challenges.

From the 2008 financial crisis to the massive pandemic crash of 2020, investors have had to endure some serious volatility. Yet, despite those setbacks, the long-term trend has remained upward, rewarding those who stayed the course. Now, let's imagine you started investing in early 2005 with nothing but a commitment to put in $100 per week.

To keep up with inflation, you gradually increase your contributions each year, aligning with typical small income boosts from raises and cost of living adjustments. By 2025, your investment would be worth approximately $384,000 before adjusting for inflation. When you do account for inflation, that number drops to about $213,000 in today's money.

What's remarkable about this scenario is that it didn't require picking individual stocks, timing the market, or making complex investment choices. It simply required consistency and patience. Even during major market downturns, staying invested and continuing to contribute would have allowed you to benefit from market recoveries and long-term growth.

Had you stopped investing out of fear during rough periods, your final amount would be far lower. Some might argue that investing $100 per week is completely unrealistic, but let's put it into perspective. $50, $200 per year is less than 10% of the median US worker's income.

While not everyone can easily set that money aside, it's a reasonable and achievable goal for many. Others may point out that the market could have performed differently, that future returns aren't guaranteed, or that gains might not be worth the sacrifice. The reality is that with a small but consistent weekly investment, you could have built a six-figure portfolio over two decades.

And if history is any indication, the next 20 years could present similar opportunities for those who stay the course. It's easy to look back and see that the S&P 500 returned around 10% per year before inflation. But actually staying invested through all the ups and downs is an entirely different challenge.

Market downturns aren't just numbers on a chart. They come with real fear, real losses, uncertainty, and financial stress that test even the most disciplined investors. Take the 2008 financial crisis for example.

The market plummeted more than 50%, wiping out years of gains and shaking confidence in the entire financial system. Banks were failing. People were losing jobs and homes, and it felt like the economy was on the verge of collapse.

Many investors gripped by fear sold at the bottom, locking in losses instead of waiting for a recovery that at the time felt far from guaranteed. But the challenges didn't stop there. After the initial recovery, the European debt crisis in 2010 to 2012 created fresh market turbulence with fears that countries like Greece and Italy might default on their debts.

In 2011, the US saw its first ever credit downgrade, causing stocks to tumble. Then in 2015, oil prices crashed, shaking energy stocks and spooking investors about global growth. Trade wars in the late 2010s added uncertainty.

And then came the pandemic in 2020, one of the sharpest and fastest market drops in history. In just weeks, the market cratered as economy shut down and no one knew what was coming next. And more recently, inflation spikes in the early 2020s have led to aggressive interest rate hikes, adding more volatility and headwinds to the market.

Each of these events shook investor confidence, making it incredibly difficult to stay the course. The emotional and financial toll of seeing your portfolio shrink, sometimes dramatically, can push even long-term investors to question their strategy. The reality is that sticking with an investment plan isn't all about numbers.

It's about managing emotions, resisting the urge to react impulsively, and trusting that the market's long-term trajectory will overcome even the worst downturns. A lot of people panic when things go south, selling at the worst possible moments. But those who stuck it out, kept investing, and ignored the noise, ended up seeing strong long-term gains.

That's really the key to investing. Not just picking the right stocks or funds, but having the patience and confidence to stay in the game even when things look bad. Tuning out the noise is undoubtedly one of the biggest challenges for investors.

Learning not to react emotionally to market news. The stock market is constantly influenced by headlines, economic reports, interest rate changes, geopolitical events, and earnings announcements. But reacting impulsively to every piece of news can do more harm than good.

Short-term market swings are often driven by speculation and fear. But overreacting to volatility can lead to panic selling or chasing trends, both of which can hurt long-term returns. Instead of making investment choices based on daily news cycles, get in the habit of focusing on the bigger picture, historical trends, company fundamentals, and long-term economic growth.

Over the past 20, 50, or 100 years, the market has endured recessions, political turmoil, inflation spikes, and financial crisis. Yet, it continued to rise over time. While past performance doesn't guarantee future results, many investors believe the S&P 500 will continue delivering solid long-term returns.

It would be unrealistic to assume that future returns will perfectly match historical averages. But one thing is for certain, we will continue to experience regular market volatility. Looking back over the past century, the market has faced countless challenges.

There have been more market scares than we can count. Yet, despite all of them, the market has continued to grow over the long run. So, to those who say this time is different, in some ways, yes, and in others, it's not.

One major factor is economic growth. The stock market's performance is closely tied to the overall economy. And if the US and global economies continue expanding, businesses will generate more profits, driving stock prices higher over time.

Inflation and interest rates also play a big role. High inflation and rising interest rates can slow market returns, while low inflation and stable rates tend to support long-term growth as consumer confidence grows and they have more money to spend since borrowing costs for expensive items consume less of their income. If inflation remains under control, interest rates don't climb too high, and trade relations with other nations remain stable or improve, the market has a better chance of maintaining strong returns, investing successfully in the S&P 500 over the next 10 to 20 years requires patience, discipline, and a long-term mindset.

Historically, the S&P 500 has trended upwards, making time in the market far more important than trying to time it. Instead of attempting to predict short-term price movements, a dollar cost averaging strategy, investing a fixed amount at regular intervals helps smooth out volatility and reduces the risk of making large investments at market peaks. To maximize gains, it's crucial to minimize fees and avoid overtrading.

Index funds and ETFs like Vanguard's V or SPDRS, SPY, are extremely inexpensive ways to buy the S&P 500, minimizing the amount that expense ratios will eat into returns. While market downturns can be unsettling, it's important to stay invested rather than reacting emotionally. Some of the best market gains occur right after major declines.

Being patient and trusting the process is crucial. The S&P 500 has never lost money over any 20-year period in history, making it one of the most reliable ways to build long-term wealth. Sure, there are many periods and years that the market has been negative.

most recently negative 19% in 2022, negative -6% in 2018, negative 1% in 2015, and negative 38% in 2008. But by sticking to a consistent investment plan, reinvesting dividends, and avoiding panic selling, you put yourself in the best position to benefit from the market's long-term growth. In the end, the lesson is simple.

Sticking with a long-term investing strategy does work. Over the past 20 years, despite economic crisis, market crashes, and endless headlines predicting doom, a consistent investment approach in the S&P 500 would have turned small, steady contributions into a significant portfolio. The key wasn't market timing, chasing trends, or reacting emotionally to volatility.

It was discipline, patience, and trust in the process. While the future is always uncertain, history has shown that those who stay invested and tune out the noise tend to come out ahead. The next 20 years will have their share of challenges just as the last 20 did.

But for those who are prepared to endure them, the potential for building long-term wealth is there.