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Are you saying that if I purchase $250,000 worth of an index fund mutual fund, I can't count on receiving $25,000 in dividends per year with a resonable degree of certainty (realizing some risk)? "

"You can assume anything you like but there exist a probablity that it will not happen."

Reply: Thanks, I'm hearing that an index fund is probably not the right vehicle for what I'm looking for...regular income at higher than bank account rates for invested funds.

"I thought the average rate of return on index funds was well over 10% during the last 10 years. Maybe I'm confusing growth and return. Is that the case?

"The total return for S&P 500 since 1926 through 1993 has been 10.49%. But there was a 10 yr period ending in 1974 where the average total return was 1.2%.

Total return for a stock is the dividends and the price appreciation of the stock. Let's say the Stock costs $10 on Dec 31, 1998. It issues a $0.25 dividend on Dec 31, 1999 and it's price has risen to

Reply: Thanks again. I'm getting educated.
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