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I didn't mention anything about the stock market. I said if you can invest somewhere with a return greater than 3.5% after tax. Implicit in that was that the i
by throwaway283719 12y ago
I didn't mention anything about the stock market. I said if you can invest somewhere with a return greater than 3.5% after tax.
Implicit in that was that the investment is risk-free i.e. it's a government bond or something. But it could be a risky investment, if the risk-return trade-off is high enough.
If I had the opportunity to invest at a 10% rate of return with a stdev of 5% then absolutely, I'd remortgage my house at 4% to do that!
- timwaagh 12y ago3.5% is not risk free. with interest rates this low, that kind of investment cannot be offered risk free. government bonds that have such roi are not going to be safe either.
- throwaway283719 12y agoYes, that is why the sentence begins with the word "if".
- tomp 12y agoIf it's too good to be true, it probably is.