Examples of IRA investing use a rate of 8+% compounded int. Which IRA invs did this well over past 10 yrs?

Question

I do not know of any 401K or IRA available investments in any of the plans I have from 3 jobs that would have provided an actual return any where near 8-9% compounded interest per year over the past 10 years. What real investments would have done this well among commercially available mutual funds (growth, small cap, bond, etc), and how do I pick one of those? I've never seen one. The good picks are break even over that time period, and the absolute best choices may have increased by 50% in 10 years. I don't see how anyone doubles or triples their retirement investing in 10 years. It seems like a game played by financial advisors to take people's money. You would have been better off buying real estate in NYC than investing in your retirement by 100, 200% or more.

Answer 1

Have you even looked at a mutual fund screen? There are tons out there that beat your 8% bogey. Your claim that the best ones are breakeven over 10 years is absolutely ludicrous. Here are a couple of very, large very well known funds that I can think of off the top of my head...

American Funds Growth Fund of America (the largest mutual fund out there) 10 year average return: 12.94% as of 12/31/06

Legg MAson Value Trust 10 year average annual return: 12.14%

Marsico Growth: 10 year average annual return: 8.16%

Fidelity International Discovery: 10 year average annual return: 11.24%

Answer 2

I would look again, even with the bear market of 01-03, the market did better than you say (at least several in my 401k did). Also, the huge advantage to 401k and IRA is the tax breaks. You decrease your taxable income and get to avoid capital gains for years.