You’re Leaving Real Wealth on the Table — Let’s Talk Growth (With S&P and TSX Insights)

When it comes to building lasting wealth, many people—especially women—end up playing it safe. They hold onto cash or low-risk instruments, believing it’s “safer.” But what if that safety is costing you opportunities? What if, instead, you could put your capital to work in markets that have historically outpaced inflation and low-yield holdings?

Below, I dive deeper into the performance of U.S. equities (S&P 500) and Canadian equities (TSX / S&P/TSX Composite). Understanding both gives you perspective on what staying on the sidelines really costs — and where your capital could be heading.

S&P 500: America’s Benchmark, with History and Momentum

Long-term averages & inflation adjustment

Since 1957, the S&P 500 has returned ~ 10.5% annually (nominal, including dividends).

Adjusted for inflation, its “real return” tends to be closer to ~ 6–7%.

Over the long term going total U.S. equity returns have averaged ~ 8–9% in real terms (minus inflation).

Recent performance

According to historical data, the S&P 500 saw ~25–27 % total return over the trailing 1-year period.

In 2025 to date, it’s clocked gains in the ~15 %–17 % range.

Compounding in action

A $100,000 investment compounding at ~12% annually can double in about 6 years.

Over 10 years, that becomes ~$310,000 (ignoring tax or fees).

Over 20 years at ~8.9%, that tracks toward ~$550,000.

This is why time in the market often matters more than timing the market.

The TSX / Canadian Equity Markets: What’s the Story?

If you live in Canada (or invest in Canadian equities or ETFs), you’ll want to see how the local markets have fared — because exchange rate, sector mix, and macroeconomic differences make a big impact.

Long-term/historical returns

Over a 50-year span (Nov 1971 – Nov 2021), the S&P/TSX Composite’s average annualized return was ~ 7.94% (CAD).

From 1960 to 2020, the TSX composite delivered about 9.3% per year (average, nominal) according to one long-term estimate.

In a 25-year overview of the S&P/TSX family, total returns exceeded 595%, which translates to an annualized rate of ~ 8% per year.

As of October 2025, the 10-year annualized total return is approximately 11.7%, with year-to-date gains around 26%.

Recent/intermediate performance

According to YCharts, as of October 6, 2025, the S&P/TSX Composite showed an annualized 10-year total return of ~ 11.71%

Its performance over the last several years has seen volatility: e.g.

YTD returns (through part of 2025): ~ 26.04% for the TSX Composite.

In past years:

2024: ~ 21.65% gain

2023: ~ 11.75% gain

2022: decline of ~ 5.84%

The Cost of Playing It Too Safe

Let’s compare how your money could grow in different scenarios:

Scenario Annual Return Starting Capital Value After 20 Years

Conservative (3%) 3% $100,000 $180,600

TSX Historical (7.9%) 7.9% $100,000 $460,000

S&P 500 Average (8.9%) 8.9% $100,000 $550,000

The difference is striking — and it highlights the opportunity cost of staying out of the market. Even a few percentage points in return can mean the difference between financial security and true financial freedom.

Why This Matters for You:

Compounding rewards the early. The sooner your money starts working, the more time it has to grow exponentially.

You don’t need to time the market. Consistency and diversification matter more than short-term predictions.

Inflation is a quiet thief. “Safe” money that earns little is actually losing value over time.

Diversification is key. A healthy mix of Canadian and U.S. investments gives you balance and global growth exposure.

Make Your Money Work Harder

If your savings aren’t growing as fast as they could, now’s the time to change that.

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