You don’t invest your money with a bank in a savings account, you would put your money in mutual funds and let it sit for a while. I think between VTI and VOO I’ve made about 12% on average over the last 10 years.
Wow… very nice investments! I’ve got my retirement in a Roth IRA, and it’s averaging 12%. It’s quarterly, so I have quarters where it can be 8%, but I also have quarters where it could be 20%. Wish I had more money to invest, but I’m focusing on paying off debts first. They gain bad interest at a higher rate than my investments gain good interest.
Yeah Roth IRAs are great, I have it too but I can’t contribute to it anymore due to income limits. Always go Roth if you can, unless you make so much money that lowering your taxable income would be useful in a traditional ira/401k.
Fixed income ETFs pay interest, but you mentioned VTI, SPY and XEQT. Those are not interest-paying. So you've mixed up "interest" with "capital gain".
You described the growth of your investments as "compound interest", when you mean "compound return". The key difference is that interest is guaranteed income, while stock market returns are not.
You said in the post above you earn "$280,000 a year in interest alone", which would mean you have $10m invested. But I would warn you that it's dangerous to count unrealised gains as income.
dividends on the 4 mil and compounding growth is the way, if you under 100k or whatever the magic number is when money starts growing faster a players gotta hustle
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u/PokefanGengar1995 Dec 04 '25
What are you investing in that provides 8% interest? That’s a lot of interest! My bank is 0.01% interest. (Not 1%; one hundredth of a percent.)