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The U.S. stock market index has risen over 25.1% year-to-date (YTD), as of Friday, Dec. 27, 2024.

For example, the S&P 500 ETF Trust (SPY) stock price has climbed from $475.31 on Dec. 29, 2023, to $595.01 as of the close on Dec. 27, 2024.

That's a YTD gain of +25.18% (i.e., $595.01/475.31 -1 = 0.2518).

Total Return %

Moreover, that does not include all the dividends you would have received.

The dividend yield today is 1.16%.

That means the YTD total return for 2024 is over +26.3% (25.18% capital gain and a 1.16% dividend yield.

Have Your Investments Done as Well?

That's important. You should check your account statement at the end of the month.

You can see if your returns are on par with this return.

Just take the amount of money you had at the beginning of the year and subtract the amount at the end. Then from this amount deduct all net contributions. That amount should be greater than 26.3% of the original amount.

Using a Formula

Here is that formula again:

1. Ending $ - Beginning $ = Total $ Increase

2. Total $ Increase - $ Contributions + $ Withdrawals = Total $ Net Gain

3. (Total $ Net Gain / Beginning $) - 1 = Net return /100 = Net Return % Gain

If this is > or = to 26.3%, your account would have equaled or beat the market

So, no matter what your brokerage firm or financial advisor tells you, you know that this is the standard or bar they are competing against.

Alternatives

Otherwise, just put your money in a low-cost ETF market index fund.

At least that way you don't have to pay for a financial advisor, a broker or anyone else monitoring or trying to advise you on your account.

It might even be worth it just from the hassle factor.

Unless your advisor is doing substantially better than the market, or you like him or her, you might want to use an index.

Or you might want to invest on your own in various stocks to see if you can do better.

I have found over time that value stocks and related short-put and short-call option plays can often significantly outperform the market.

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