That's six years, not five. And the annualized return (geometric mean, not mean) is 12.85%, not 16%.

Worst of all, you picked a short outlier period to consider. If you instead look at the trailing ten years of Feb 2006 to Feb 2016, the annualized return is 6.3%, even with dividend reinvestment. And that's without accounting for inflation, making your real return closer to 4.5%.

Bump up to look at the last 30 years and with dividend reinvestment and adjusting for inflation, you get about 7%. I think that's probably a realistic target to shoot for in the very long run (decades).

Source: http://dqydj.net/sp-500-return-calculator/

Good points on the tax benefits, however the S&P historically is about 10% over the long haul. 16% over the past 5 years is irrelevant. I have no control in the S&P.

I have control in my company. I'd rather rise or fail due to myself than say - the market did this.

I max a 401k for tax purposes and do state muni-bonds for safe, decent tax-free monthly dividend income while I decide what current or new business of mine to invest the cash in. The market is basically tax-friendly gambling.