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I can’t even tell what the suggestion is for the article. Panic? Assume my money is going to become worthless? Buy some fancy fund that manages risk better (bu
by Kirby64 3y ago
I can’t even tell what the suggestion is for the article.
Panic? Assume my money is going to become worthless? Buy some fancy fund that manages risk better (but, historically, does worse than the s&p)? Seems like this is yet another chicken little prediction that is going to be found to be inaccurate years later.
The author doesn’t really give any evidence that this time is different. And, given that everyone cries this time is different, I’m extremely skeptical.
- francisofascii 3y agoThe suggestion is to simply to lower expectations. People always expect their 401Ks to beat inflation over the long run. Author is saying you might see a lost decade where you gain very little.
- Kirby64 3y agoThe 'lost decade' issues only have previously applied if you dump all your money in at a specific timeframe, then never contribute anything else. Or, alternatively, if you pull out a large amount of money after the downturn. Traditional 'set and forget' 401k funding would imply you continue to contribute throughout the period (i.e., dollar-cost-averaging). By putting money in during the downturn, those dollars earn outsized rewards when the market inevitably bounces back. It essentially cancels out the money lost.
- WkndTriathlete 3y agoWhich is stupid. If I shouldn't expect returns on my investments to beat inflation why would I bother investing in equities? By that metric I should put all of my money in TIPS and be done with it.