/biz/ - Business & Finance

So let me get this straight:
>Put life savings in the index of your choice (FTSE, S&P, DOW, whatever)
>Even if we get a few shit years, it'll average 2% growth a year before dividends
>Dividends are typically like 4% of your total holdings, so your amount of holdings should go up 4% a year
>1.02*1.04 is approx 1.06%
>Therefore on pessimistic estimates, you grow your wealth by 6% a year by throwing it in an index and doing nothing
So why does anyone looking look term bother with bonds on lock-in ISA schemes? Their rates are 2% at absolute best. Are my numbers wrong?