Graphs or Pics to illustrate returns on investing in the market

I am trying to find a website, or graph that illustrates the return on investing x dollars and reinvesting the dividends.

I have seen several graphs but none that I like. I want to find a graph that defines how much you would earn if you had an IRA / 401K and you invested $1k a year from age 18-65 ( or 25, or 30, or 40 ) and you earned 6 - 8 percent a year. Or any other standard amount.

I want to find another one that illustrates the return from the stock market. I want to be able to illustrate that even though the stock market goes up 20 percent one year and down 10 the next year, historically, it still averages about 8 percent a year.

I have seen numerous graphs, but none that really define what I am trying to explain.

Any suggestions?

Thanks

 

Excel ? Gpt ?

 

I was looking at pics online and I found some that I cut and pasted, but I never found anything that completely showed what I wanted. I have seen them many times before, but not when I want them now.

 

Like this?


Here’s a realistic chart illustrating the growth of an IRA/401(k) with $1,000 annual contributions from age 18 to 65 under two different scenarios:

1. The blue line:
   
   • This represents a simulated portfolio experiencing real market fluctuations.
   • Returns vary yearly (e.g., some years up 20%, some down 10%), but the long-term average return remains around 8%.
   • This mirrors historical stock market behavior, where volatility exists, yet steady growth occurs over time.
2. The red dashed line:
   
   • Represents an idealized smooth 8% growth with no volatility.
   • This is how the account would grow if the market delivered a constant 8% return each year, which never actually happens in reality.

 

I must be misunderstanding. Wouldn't these show the same plot?

 

I think you a right haha.
They should be more sinilar

 

The image looks correct. Increasing volatility will decrease compoinded returns. You need to use geometric mean.

 

Many of the ones I have found online don't have specific dates listed, or I found a chart that ended in 2015, or so.

If I used something similar, then the next question would be ...what has happened since then, how has it done so far this year...?

But this. is a good start..

Thanks for your help.

 

Thank you for explaining it. Makes sense.
I'm still surprised by how different they plot. I would expect them to be much closer than depicted (over the timeframe plotted)