antonichen
New member
Hello,
So I've been crunching numbers comparing Compound Annual Growth Rates for the S and C funds... about six months ago, I initially did this calculation for a time period of 13 years (from 2007-2019), which resulted in the CAGRs being almost the same (around 8%). But after analyzing the two funds since 2000 (up through now including 2020), it looks like the CAGR for the S fund is definitely beating the C fund out (at least for these years). C: approximately 6.6% and S: 8.3%. This has gotten me debating on whether or not I should put more money into the S rather than just the C. This analysis was the result of seeing such fine returns for the S fund this year, so I wanted to see how it performed over the past 20 years while compared to the C fund.
I'm going to attach my own spreadsheet in which I've calculated these... the annual return rates come straight from the TSP website, and I've calculated CAGR with both geometric mean and also [(final/initial balance)^(1/# years concerned) -1]*100. The *100 merely for %.
Edit: I'm a service member and not a financial consultant. I'm sure these values are different than "de-facto" growth rates based on how often the rates are calculated (e.g. annually, daily etc), and also, I started with a hypothetical $10,000 just to view what would have happened in each of these funds over the past 20 years. Definitely welcome any feedback and thoughts on smartly investing in S and C over the long haul. I'm looking to pull my money out in 28 years and I'll continue to take as much risk as possible for at least the next 18-20 years.
PS -- Please let me know if my attachment doesn't work, and I will upload merely the text.
So I've been crunching numbers comparing Compound Annual Growth Rates for the S and C funds... about six months ago, I initially did this calculation for a time period of 13 years (from 2007-2019), which resulted in the CAGRs being almost the same (around 8%). But after analyzing the two funds since 2000 (up through now including 2020), it looks like the CAGR for the S fund is definitely beating the C fund out (at least for these years). C: approximately 6.6% and S: 8.3%. This has gotten me debating on whether or not I should put more money into the S rather than just the C. This analysis was the result of seeing such fine returns for the S fund this year, so I wanted to see how it performed over the past 20 years while compared to the C fund.
I'm going to attach my own spreadsheet in which I've calculated these... the annual return rates come straight from the TSP website, and I've calculated CAGR with both geometric mean and also [(final/initial balance)^(1/# years concerned) -1]*100. The *100 merely for %.
Edit: I'm a service member and not a financial consultant. I'm sure these values are different than "de-facto" growth rates based on how often the rates are calculated (e.g. annually, daily etc), and also, I started with a hypothetical $10,000 just to view what would have happened in each of these funds over the past 20 years. Definitely welcome any feedback and thoughts on smartly investing in S and C over the long haul. I'm looking to pull my money out in 28 years and I'll continue to take as much risk as possible for at least the next 18-20 years.
PS -- Please let me know if my attachment doesn't work, and I will upload merely the text.
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