5 ms·

In 2009, the S&P 500 returned 23%, where were you then? It did similarly well in 2013. Are you picking stocks or something? Because you should settle down an

In 2009, the S&P 500 returned 23%, where were you then? It did similarly well in 2013. Are you picking stocks or something? Because you should settle down and just get some Index Funds from Vanguard. The Median 15 year annualized return on the S&P 500 since inception is 12%, back out 2% inflation and you're right at 10% returns. 10% returns are not unreasonable. Sure it's not going to be a flat 10% every year like the article, but annualized returns of 10% over 15-20 years is doable for everyone.

maxxxxx 11y ago
If it's that doable why are there no funds that guarantee 8% every year? I would even buy a fund that gives me "only" 5% guaranteed. They can keep the other 5%.
- prewett 11y ago
  Why would I guarantee something if I could avoid it? Investment returns are lumpy; some years you get +23%, other years you get -20% (probably 2008, for example), why would a fund manager offer a guarantee? An average of 10% over a long period is doable; Berkshire Hathaway has averaged +15% for 40 years. Just because fund don't guarantee something doesn't mean it isn't doable.
  - maxxxxx 11y ago
    Winning the lottery is doable too. So is making $20 million per year as golf pro. When people give investment advice based on the 10% average return (which they do) then it should be a pretty safe thing and easy to achieve for everybody. Otherwise it will be bad advice for a lot of people.
icedchai 11y ago
Where was I? I was invested and investing more every week.
IkmoIkmo 11y ago
> The Median 15 year annualized return on the S&P 500 since inception is 12%, back out 2% inflation and you're right at 10% returns. lol, that's a ridiculous representation of things. A median 15 year return... Imagine there's a fund with a 50 year history. Three 10 year periods had a return of 15%, and the other two periods had a return of -50%. Would you invest? Hell no. Yet they have an 10 year annualized median return of 15%. Who cares. Beyond that, the 2% also isn't quite right. In reality the return has been about 10% annualized since inception and the 100 year inflation rate has been 3.2%, but even that overstates some amazing returns a long time ago like in the 50s that won't return anytime soon. If you want to talk about 15 year returns, talk about the most recent 15 years... Between 2000 and 2015 the return's have been 37% in total, or 2% per year, "back out 2% inflation" and I hope you enjoy your 0% returns. Obviously we can cherry pick things all day like I just did, we can talk pre 2007 and post 2009, but 10% returns are definitely not reasonable for an average person for an average year, and that's what we're talking about here, that's what is reasonable, and that's not 10%. It's closer to 6% inflation adjusted I'd guess. And that's a huge difference, compounded over say 20 years on $100k it's a difference of $300k.
song 11y ago
My assets are diversified, so not only index but also real estate, and I'm not based in the US. 2013 was actually a good year but I only did around 7% once we account for inflation.

maxxxxx 11y ago

If it's that doable why are there no funds that guarantee 8% every year? I would even buy a fund that gives me "only" 5% guaranteed. They can keep the other 5%.

prewett 11y ago
Why would I guarantee something if I could avoid it? Investment returns are lumpy; some years you get +23%, other years you get -20% (probably 2008, for example), why would a fund manager offer a guarantee? An average of 10% over a long period is doable; Berkshire Hathaway has averaged +15% for 40 years. Just because fund don't guarantee something doesn't mean it isn't doable.
- maxxxxx 11y ago
  Winning the lottery is doable too. So is making $20 million per year as golf pro. When people give investment advice based on the 10% average return (which they do) then it should be a pretty safe thing and easy to achieve for everybody. Otherwise it will be bad advice for a lot of people.

icedchai 11y ago

Where was I? I was invested and investing more every week.

IkmoIkmo 11y ago

> The Median 15 year annualized return on the S&P 500 since inception is 12%, back out 2% inflation and you're right at 10% returns. lol, that's a ridiculous representation of things. A median 15 year return... Imagine there's a fund with a 50 year history. Three 10 year periods had a return of 15%, and the other two periods had a return of -50%. Would you invest? Hell no. Yet they have an 10 year annualized median return of 15%. Who cares. Beyond that, the 2% also isn't quite right. In reality the return has been about 10% annualized since inception and the 100 year inflation rate has been 3.2%, but even that overstates some amazing returns a long time ago like in the 50s that won't return anytime soon. If you want to talk about 15 year returns, talk about the most recent 15 years... Between 2000 and 2015 the return's have been 37% in total, or 2% per year, "back out 2% inflation" and I hope you enjoy your 0% returns. Obviously we can cherry pick things all day like I just did, we can talk pre 2007 and post 2009, but 10% returns are definitely not reasonable for an average person for an average year, and that's what we're talking about here, that's what is reasonable, and that's not 10%. It's closer to 6% inflation adjusted I'd guess. And that's a huge difference, compounded over say 20 years on $100k it's a difference of $300k.

song 11y ago

My assets are diversified, so not only index but also real estate, and I'm not based in the US. 2013 was actually a good year but I only did around 7% once we account for inflation.