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But what if the next years will be different from the past years? What if we are reaching a point where the system breaks for good? My procrastinator brain like
by alserio 5y ago
But what if the next years will be different from the past years? What if we are reaching a point where the system breaks for good? My procrastinator brain likes to put some existential dread out there. Can I just answer it with "if it will break we will be fucked anyway"?
- sokoloff 5y agoI think that in any scenario where society continues that owning shares of important companies will be economically valuable. To that end, I think most people want a “get rich slowly” strategy where, rather than gamble on the next Dogecoin, you buy broad-based indexes (or other mutual fund make ups) regularly and sustained over a long period. “Time in the market beats timing the market.” If that’s not enough, read up on the worst market timer: https://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/ https://awealthofcommonsense.com/2014/02/worlds-worst-market... There’s no guarantee that we’ll continue to see low double-digit gains. I’m personally modeling my retirement on a 5% real return CAGR (close to half of the historical, long-run average) and any actual returns over that mean that I will work longer than I strictly had to and become a head-start to my kids.
- alserio 5y agoThank you
- DeathArrow 5y agoBut from that 5% you have to subtract the inflation rate.