But if we assume that the index is capable of producing comparable returns over the next three decades, and you invest $500 a month in S&P 500 index funds that deliver a 10.7% average annual return over a 30-year period yourself, you’ll wind up with $1.13 million. Make it $1,000 a month, and you’ll have $2.25 million to enjoy.
What makes the S&P 500 a safer investment than Bitcoin? It’s easy — it’s been around longer, and it has a lengthier history of recovering from downturns and rewarding investors who stay the course. Because Bitcoin has only been around for a little more than a decade, we don’t know what sort of staying power it has.
Also, the future value of Bitcoin will hinge largely on how much demand there is for it, and for demand to stay strong, Bitcoin needs to become a widely accepted form of currency. But it’s too soon to say whether that will happen or not, so if you’re looking for a way to grow solid wealth without having to expose yourself to a world of risk, S&P 500 index funds may be a much better bet.
To be clear, this isn’t to say you shouldn’t invest any money in Bitcoin. But it still pays to put the bulk of your assets into the stock market, and S&P 500 index funds are a great way to invest in it for the long haul.
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