On Tue, 18 Jan 2005 15:16:27 -0500, Won Lee <[EMAIL PROTECTED]> wrote: > Cameron Childress wrote: > >>>The market in that 10 year period has a return of 10% but you actually > >>>lost money because you have to weight it. > >> > >>Well said - the point is if, over the 10 years, you're also drawing > >>down that money to live off of, you have less and less to invest at > >>the same time you have to start taking on more risk. One Enron and > >>you're sunk. > > > > > > You would REALLY suggest to someone that they leave their money in > > stocks after retirement? Now I understand why you want the Federal > > govt to take away your money and handle it all for you. :) > > > > -Cameron > > > > > Doesn't have to be while you are retired. What if it was when you were > 40? The point is that the market returns 10% over any 10 year period is > not the guide for how much money you should expect to have in that same > 10 year period. It also highlights the risk of being in stocks. People > should not just assume a 10% return.
It's still not a valid argument against putting money in the market. 1) The 40 year rate of return will still beat SS, even if you select 1974 as the 40th year in any example. 2) Most people invest in high risk vehicles at a young age and low risk as the approach retirement. This means that a 35% drop in the market right before you retire WILL NOT mean you lose 35%. I agree that people should not assume a 10% return. There's no guarantee that I will even get a return at all over 40 years. I'd stil prefer that risk over the certainty that the govt will mis-manage my money if I give it to them. -Cameron -- Cameron Childress Sumo Consulting Inc http://www.sumoc.com --- cell: 678.637.5072 aim: cameroncf email: [EMAIL PROTECTED] ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Find out how CFTicket can increase your company's customer support efficiency by 100% http://www.houseoffusion.com/banners/view.cfm?bannerid=49 Message: http://www.houseoffusion.com/lists.cfm/link=i:5:143248 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
