Investing in S&P 500 when it's only making 1.7%?

[orpah]

(Title should say 1.17%)

Is it worth investing in S&P500 when it's got roughly the same return as my savings account?

Also - is it ever worth investing in it short-term (up to 1 year)?

EDIT: Thanks guys - turning off reply notifs on this now because I've got my answer, feel free to keep discussing ofc

 

[kindlyk]

@orpah currently the return may be 1.7% for you, but in a few months it may be +10% or -10%. I'd highly recommend reading a lot more around the subject

 

[resjudicata]

@orpah

Is it worth investing in S&P500 when it's got roughly the same return as my savings account?

You are comparing two totally different financial products. If you invest in the S&P (or any other mutual fund), you are in for the long term (more than 5 years at the very least).

Also - is it ever worth investing in it short-term (up to 1 year)?

No. Volatility is too high, it is highly discouraged.

I highly suggest you read a bit about the subject. I say this sincerely, as it sounds like your ideas are a bit confused

 

[nontheologian]

@resjudicata It's not that it's discouraged. The numbers speak for themselves, even before you worry about the past being a poor prediction of the future. Grab a few 12 month historic periods and see what the index did in that time. A significant proportion will underperform a savings account.

 

[resjudicata]

@nontheologian So you're basically confirming that it is indeed correct to say it is discouraged.

 

[jkcoke]

@nontheologian Is it fair to say that it is, therefore, discouraged?