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Location: Cleveland bound with MPLS in the rear-view
5,509 posts, read 11,820,974 times
Reputation: 2501
Quote:
Originally Posted by MaseMan
The historic long term track record of the stock market is about 12%. What that has to do with baby boomers or Gen X/Y, I don't really know.
12% was the number I always had heard about. I believe it's the average annual return of stocks since the Great Depression until 2000 or so. I thought it was already adjusted for inflation.
12% was "guaranteed" as long as you had a balanced portfolio, so all of us were encouraged to put money into stocks (and bonds) with the assumption that the returns were essentially "guaranteed". In 2008, we all found out that there are no certainties in any investment vehicle! Baby Boomers lost a lot of their net worth because of the recession and the housing bubble. Few people have true value/wealth in this country based on these assumptions of "guaranteed returns". Anyone who doesn't research a company and does not know how they do business or value their business is speculating.....that is what most people do with their money -- speculate, not invest.
I was half joking that it's "all the Baby Boomers fault". It's everyone's fault. But investing and saving will never be the same again and retirement is not going to be a given anymore like it was (supposed to be) for the Baby Boomer generation.
12% was the number I always had heard about. I believe it's the average annual return of stocks since the Great Depression until 2000 or so. I thought it was already adjusted for inflation.
.
Its my understanding that the last 10 years dragged that number down under 8% now...
Location: Cleveland bound with MPLS in the rear-view
5,509 posts, read 11,820,974 times
Reputation: 2501
Quote:
Originally Posted by Themanwithnoname
Its my understanding that the last 10 years dragged that number down under 8% now...
There is no way that 10 years out of 80 dropped the average down to 8%.....but I suppose it's not entirely impossible. 9% or 10% sounds more accurate to me...but I'll believe you for now. Even 8% is not guaranteed with the most balanced portfolio -- that's the point I'm driving at.
First off, I'm 33 years old, at the very tail-end of Gen X or the beginning of Y, depending on who's classification system you're using. I am getting sick of reading thread after thread of my generation and younger whining and complaining about how it is impossible for them to get ahead (or even going) in today's word.
They whine about how it's impossible to go to school without becoming a debt-slave, impossible to buy a house, impossible to raise a family, impossible to even get a job, ect, ect...
WTF is wrong with you people? I worked my way up in my job field from 11 dollars an hour to 24 now, put myself through college without taking out a loan, own a house that is worth more than 200K, have 2 cars (one paid for) 3 kids, no debt besides the mortage and car loan, a bunch of toys and my wife is even a stay at home mom. It wasn't hard.
Here's how: I did a good work and progressed in my job. I bought a fixer-upper house and restored it myself. I kept good credit so I get the best rates on loans. I lived within my means and didn't overextend myself early, so I would have more later. I budget.
Why is this "impossible" for so many people? Did your mommies not teach you how to be an adult? Are you unable to plan more than a week ahead? Stop whining! It's always been challenging to get a life started no matter what generation a person finds themselves in. If chango can do it, you are a sure bet!!!! Get out there and get to work!!!!!
Congrats, my 33 year old daughter did the same and has even paid of her mortgage and car. She is 100# debt free and now saving like mad.
It didn't take with her 30 year old sister who is constantly broke: same parents, same lessons. Go figure.
There is no way that 10 years out of 80 dropped the average down to 8%.....but I suppose it's not entirely impossible. 9% or 10% sounds more accurate to me...but I'll believe you for now. Even 8% is not guaranteed with the most balanced portfolio -- that's the point I'm driving at.
I said understanding... Meaning that I have read it in several different sourced articles.
Havn't tracked the data myself.
HOWEVER:
It's NOT "10 years out of 80"
The 12% was termed as:
"Any 40 year period out of the X Years the stock market has been in existence." (It was quite a few years ago I first read that)
So your not looking at 1/8th, your looking at 1/4th.
And I agree, I invest in stocks/mutual funds, but it's a PART of my overall plan.
Location: Cleveland bound with MPLS in the rear-view
5,509 posts, read 11,820,974 times
Reputation: 2501
Quote:
Originally Posted by Themanwithnoname
I said understanding... Meaning that I have read it in several different sourced articles.
Havn't tracked the data myself.
HOWEVER:
It's NOT "10 years out of 80"
The 12% was termed as:
"Any 40 year period out of the X Years the stock market has been in existence." (It was quite a few years ago I first read that)
So your not looking at 1/8th, your looking at 1/4th.
And I agree, I invest in stocks/mutual funds, but it's a PART of my overall plan.
I think we both get the point, so let's forget the semantics, and I'll forget you don't know the difference between "your" and "you're"....
....what? Show me 12% returns and I'll show you my entire portfolio!! You can't guarantee 12% now like you could before, and you never will be able to again. Most stock brokers can't beat the S&P 500, which will NOT gain 12% this year!
How long have you been investing? In what kind of equities and bonds?
In stocks, there are NO guarantees. There was NEVER a guarantee. Who told you that?
NLY alone is beating 12% this year, last year, the prior year, etc. And it's no hidden gem either.
Its how you manage your portfolio. I keep an eye on it every single day so I make the proper changes.
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It's always been challenging to get a life started no matter what generation a person finds themselves in. If chango can do it, you are a sure bet!!!! Get out there and get to work!!!!! 
