My bookmarks

Pins are saved using cookies. Deleting them from your browser will delete your preferences.


Alger on the money - The benefit of 1% More

10 November 2017

Many people perceive the act of saving as requiring the sacrifice of current pleasures amid the uncertainty of predicting an unknowable future. Fortunately, even a minor adjustment to an existing savings plan combined with smart investing can yield material results.

  • A savings rate increase of 1% or 100 bps could be worth more than $200,000, assuming a $100,000 yearly household income, annual contributions for 40 years and a 6% rate of return compounded annually.1
  • Our analysis indicates that over the coming decade, equities may be the best way to earn a mid-single digit annual return. Using the strong relationship between starting valuation and ensuing 10-year returns for both stocks and bonds, we see that based on recent valuations, stocks might outperform bonds by several hundred basis points.
  • Because in the U.S. small companies are forecasted to produce much faster EPS growth than large companies next year, we believe small cap stocks may continue to achieve greater returns than large cap stocks going forward. Over the long term they have averaged two percentage points in annual return more than large caps. We believe they are a logical target for investors seeking to maximize their returns (see Alger On the Money “Looking for Higher Returns?”).

1Assumes annual household income increases of 2%.

 > Download Alger on the Money, A view on the U.S. Market



La Française Group provides access to the expertise of a number of asset management companies around the world. To provide you with the most relevant information, we have developed an interface to present the full range of products available for your investor profile and country of residence.

Present yourself


Your country of residence

Your language

Your profile

By continuing browsing on this website, you accept the use of cookies and other tracing devices s as to allow you to receive information suited to your profile, facilitate information sharing on social networks, guarantee the best browsing experience possible and to create statistics. To find out more, we invite you to consult our Privacy and Cookies policy. Find out more.