A Historical Perspective on Safe Investment Returns
By Dana Anspach, About.com
Safe Investments Produce Some Investment Income: But It Varies From Year to Year
In addition to capital preservation, when you make safe investments, you also receive interest income. How much income can you receive?
In 1981 a safe investment (such as a certificate of deposit) yielded 17.2%. For every $100,000 you had invested, you would have received $17,200 in interest income.
In 2003 that same investment yielded 1.2%, or $1,200 of interest income, per year, on every $100,000 invested.
If you retired in 1981, and only invested in safe, interest bearing accounts, you would have found it difficult to maintain your standard of living.
Below is a table that shows you the approximate amount of interest income you would have received each year since 1973 for every $100,000 invested.
Historical 1 Month CD Returns | ||
Year | Return | Annual Income Per $100k |
1973 | 8.4% | $8,400 |
1974 | 11.0% | $11,000 |
1975 | 6.6% | $6,600 |
1976 | 5.3% | $5,300 |
1977 | 5.6% | $5,600 |
1978 | 8.1% | $8,100 |
1979 | 11.5% | $11,500 |
1980 | 13.6% | $13,600 |
1981 | 17.2% | $17,200 |
1982 | 13.0% | $13,000 |
1983 | 9.4% | $9,400 |
1984 | 10.9% | $10,900 |
1985 | 8.4% | $8,400 |
1986 | 6.9% | $6,900 |
1987 | 7.2% | $7,200 |
1988 | 7.9% | $7,900 |
1989 | 9.7% | $9,700 |
1990 | 8.7% | $8,700 |
1991 | 6.3% | $6,300 |
1992 | 3.9% | $3,900 |
1993 | 3.2% | $3,200 |
1994 | 4.4% | $4,400 |
1995 | 6.2% | $6,200 |
1996 | 5.6% | $5,600 |
1997 | 5.8% | $5,800 |
1998 | 5.7% | $5,700 |
1999 | 5.4% | $5,400 |
2000 | 6.6% | $6,600 |
2001 | 4.2% | $4,200 |
2002 | 1.8% | $1,800 |
2003 | 1.2% | $1,200 |
2004 | 1.4% | $1,400 |
2005 | 3.2% | $3,260 |
2006 | 5.1% | $5,150 |
2007 | 5.4% | $5,450 |
2008 | 3.1% | $3,140 |
