Yeah, guys.
Yeah, guys.
I was with you up to your last point. The Vanguard 500 Index fund, as an example of a "very conservative index fund", returned -0.9% per annum over the last 10 years. (source). In other words, stuffing your cash in a mattress has offered a better rate of return over the past 10 years than the stock market.
Now you could argue, I suppose, that the 10 year window is abritrary, that it includes two extraordinary events (9/11 and the Great Recession) and that we have no where to go but up. and that an actively managed fund might well have helped you avoid losses in those extreme down markets. And you might be right. I'm just sharing data, not speculating.
edit: also don't you mean 20% equity?
Last edited by TomAz; 06-14-2010 at 02:43 PM.
I only make about $100 more than I pay in bills each month, but I only drink about $100 worth of alcohol each month, so it works out. It's FINE.
Last edited by lickety_spit; 06-14-2010 at 02:44 PM.
your ≠ you're
[boarderwoozel3] dying or tim & eric
[boarderwoozel3] I'll take dying
One more reason is that your mortgage is one of the only tools you will ever have to guard against inflation. You are losing about 3% per year on every dollar you pre-pay on your mortgage.
Not sure I understand your 20% equity question?
Also, there is a difference between investing one amount 10 years ago and investing the same amount every month spread out over the same period (dollar cost averaging).
In my current account, I am about forty quid overdrawn, and I've got about fifty quid in my pocket that I owe somebody. But I've just discovered that I actually have a significant chunk of change in an account I'd more or less forgotten about.
Holy shit, I think I might get a car.
It's Ireland, their cars are made of corrugated despair.
about to close escrow on 2 houses in Newport Beach...hello commissions!
Crazy/scary amount of money to get all at once.
Last edited by JustSteve; 06-14-2010 at 03:30 PM.
Not quite enough to buy a car, but I found $400 a couple weeks ago. I had forgotten about it.
Well that's a hell of a nice find, Gemma! Don't you think it would be more practical to use that money to come to Coachella next year though?