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> There's no (close to) zero-risk investment at the moment that yields 6%. Aside from FDIC-insured savings accounts, nothing has close to zero risk. On the oth

> There's no (close to) zero-risk investment at the moment that yields 6%. Aside from FDIC-insured savings accounts, nothing has close to zero risk. On the other hand, something like Vanguard's VTSAX is fairly safe and is currently doing about 20% YTD: https://personal.vanguard.com/us/funds/snapshot?FundId=0585&FundIntExt=INT#tab=1 https://personal.vanguard.com/us/funds/snapshot?FundId=0585&... If we have another financial crisis things are going to suck, but other than that, since this fund tracks the entire stock market, it's pretty stable by design. Mix in some bonds and you should be in good shape. (Note: I am merely repeating advice I've run into on financial advice forums.) With FDIC-insured savings accounts, the best you can do is around 1%, which doesn't even beat inflation.

sz4kerto 12y ago
The VTSAX index is nice, if you're not unlucky. If you invested into VTSAX in mid-2007, then until today your annual return would be somewhere around 3.5%. Not horrible, but not 6% either. It does not matter that this year it's around 20%. What I'm saying is that you cannot simply take 6% return as granted -- it's similar to saying that property prices double every 10 years. Yes, usually they do raise, but not all the time. >If we have another financial crisis things are going to suck We tend to have financial crises in every decade. .com-bust, property crisis, Russian crisis, Black Friday, Japan stockmarket crash... they happen all the time. US Treasuries are practically zero risk, but obviously there are a lot of other risks - if you store your wealth in USD, then you have FX risk for example as most of your gadgets are produced in other countries like China, etc.