To achieve 7.2% in 10 years, I'd use a solid dividend mutual fund. PRDGX has a low expense ratio and tracks companies that have a long track record of raising dividends over time. They are slow-moving large cap US companies that pay handsome dividends. Just use a DRIP (dividend re-investment program), and sit tight. IMO, less risk that an S&P500 fund, but also less reward potential (that's investing for ya'). Not a guarantee that you'd achieve the 7.2%, or even that you wouldn't lose money though. Companies that show dividend growth over time usually are financially strong. Best thing about the fund is that they will axe companies whose dividends are in danger of being cut.
One bad thing about dividends, is that if this is a taxable account, you will get hurt on your tax bill. If its tax-deferred, then I REALLY LOVE DIVIDEND GROWTH FUNDS. I believe there are also dividend achiever index funds with possibly lower expense ratios that are more or less the same thing.
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Thanks,
ea1776
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