4 ms·
Index funds aren't individual stocks. They're pretty low risk. If an index goes to 0, T-Bills, CDs, and cash won't be worth anything either, you'll need shotgun
by 1812Overture 10y ago
Index funds aren't individual stocks. They're pretty low risk. If an index goes to 0, T-Bills, CDs, and cash won't be worth anything either, you'll need shotgun shells, generator fuel, and canned food.
- taurath 10y agoIndex funds are stocks. The market contracts - frequently. Over long periods of time its gone up. See the chart below [0] - If you invested all your money in 1965, there is only a 8 year window at the end of the 90s where you would have averaged a 3% return per year. Much of the rest of the time you're looking at negative returns. [0]: https://static01.nyt.com/packages/images/newsgraphics/2011/0102-metrics/triangle.png https://static01.nyt.com/packages/images/newsgraphics/2011/0...
- 1812Overture 10y agoIf you invested at the worst time in the past century that would be bad. If you invested in T-bills or CDs you'd have gotten murdered by inflation in that period too. NYT piece you're referencing says the average annual return over 20 years is 4.1% net of taxes, fees, and inflation. Not too bad.