Re: Am I missing something here about planning for retirement???
am 20.09.2005 16:47:19 von NoEdEven though most on this NG disagree with the B&H approach, you might want
to look at these sites and read these books:
----- Original Message -----
From: "NoEd" <>
Newsgroups: misc.invest.mutual-funds
Sent: Sunday, September 18, 2005 8:24 AM
Subject: Re: Newbee
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> A Random Walk Down Wall Street by Burton Malkiel
>
> www.vanguard.com
>
> www.indexfunds.com
>
> www.morningstar.com
>
> All About Index Funds, Richard Ferri
>
>
>
> www.ishares.com
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> www.fool.com
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>
>
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> S&P is tracking how well index funds perform against actively managed
> funds.
> This site alone should convince you of the superiority of index funds.
>
>
> www.scottrade.com 'I recommend this broker.
>
> This is a "S&P Index Versus Active Funds Scorecard"
>
> Don't buy into the market timing, technical analysis( e.g. resistance
> & "W" pattern (Huh????)), money can be moved around based on someone's
> version of common sense, and look at these returns after the fact
> rhetoric.
> Think in terms long term returns (5+ Years), simplicity, and costs, the
> lower the better. The higher the risk the higher the potential return
> but
> the higher the potential loss. Absorb risk in proportion to the time you
> will be in the market.
>
> There are no secret methods for making money in the market other than
> selling "information"to others purporting they will be taught how to time
> the market, read charts, etc. Remember Wade Cook, the Wall Street Money
> Machine?
>
> Most the folks on this NG have the hubris that they are smarter than the
> market. The have invest huge chunks of time doing "research," and they
> can
> stand the thought that nearly all of this time has been wasted.
>
"Viking" <> wrote in message
news:
> Pundits say to expect only 7% return from the market these years. OK.
> Inflation runs at, say, 3.5% (a low estimate given what's happening to
> oil). OK, that leaves a return of 7% - 3.5% = 3.5%. Say taxes and fees
> (broker/fund/etc) take part of that, leaving your yield at 3%.
>
> So say that you want to invest for retirement, and can put away $500
> a month, or $6,000 a year. OK. Say you decide you'll need $1,000,000
> in today's dollars to retire. OK, that means you should use the
> inflation-adjusted annual return of 3% to get there.
>
> So how long will it take before you can retire?
>
> If you invest $500 a month, it'll take you 60 years to reach
> $1,007,606.
>
> 60 years???
>
> At 40 years, more or less the maximum length of time for most working
> people, you'll only have $465,949.
>
> If you're fortunate enough to be able to invest $1,000 a month
> (significantly more than the average person can afford), investing
> $12,000 annually at an annual rate of 3% will take you 42 years to get
> to $1,013,767.
>
> That's 42 years, if you can invest $1,000 a month, which most people
> can't. How many people do you know who invest $1,000 a month for
> retirement?
>
> So tell me: is the market way a bust as far as saving for retirement
> goes for the vast majority of people??? Am I missing something? How
> are people going to be able to retire?