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It’s not just bitcoin. People are told to “invest for retirement” and to do their financial planning based on 4-8% per year growth after inflation, when the ri
by lesam 4y ago
It’s not just bitcoin.
People are told to “invest for retirement” and to do their financial planning based on 4-8% per year growth after inflation, when the risk free rate has been 2% or less for 20 years.
If the US stock market stagnates for the next 20 years like it has in other countries, people will be blamed for buying ETF’s too. “Don’t invest money you can’t afford to lose”, say the people who profited from 20% annual growth on houses while mortgaged to the hilt. But also, “why can’t millennials afford houses?”
- dahdum 4y ago> People are told to “invest for retirement” and to do their financial planning based on 4-8% per year growth after inflation, when the risk free rate has been 2% or less for 20 years. You're trading risk for reward, so the standard advice of de-risking your portfolio as you approach retirement age is quite reasonable. Doesn't make much sense for a 24 year old to stick to the risk free treasury rate for 40-50 years.