Investor Serenity: Chasing 5% Long-Term Returns Isn't Enough to Keep Up With Real Living Costs

Investor known as "white-haired stock god" Serenity said in a post that investors shouldn't settle for chasing roughly 5% annual returns over 10 or 30 years, since the real prices of some everyday goods have risen far faster. Citing the price of a Subway sandwich rising from about $5 to roughly $20 after tax over about 12 years — an average annual increase of about 12% — Serenity argued that holding stock assets like the S&P 500 ETF SPY is a better way to keep pace with rising real living costs such as food.