revisiting CD vs stocks

ppl is not down much this year . but then again including dividends the stock lost money the last 3 years so i guess like they say you can't get hurt jumping out the basement window .
 

mathjak107 said:
What risk adverse people fail to realize is that even after these drops the balances over time are still far higher then hiding under a rock in fixed income .

A hypothetical 100k in the fidelity insight growth model which I use , since 1987 is now 2.7 million without another penny added . On the other hand using the fixed income model all those years you would be at a fraction of the amount . That model started in 1991 and is 380k.


.
Click to expand...



Thanks to God, being smart with my money and my "hiding under a rock" CDs enabled me to retire comfortably early at age 55. Now, eleven years later, my CD nest egg is much larger.

Those three decades long stats you quote will not help an older person whose stocks may have lost money at a critical time he personally needs all his money to support him in retirement and he can't afford to wait years to recoup the loss.

.
 
"I am more concerned with the return of my money than the return on my money."

Will Rogers
 

KingsX said:
Thanks to God, being smart with my money and my "hiding under a rock" CDs enabled me to retire comfortably early at age 55. Now, eleven years later, my CD nest egg is much larger.

Those three decades long stats you quote will not help an older person whose stocks may have lost money at a critical time he personally needs all his money to support him in retirement and he can't afford to wait years to recoup the loss.

.
Click to expand...
I thank my wife. She set our early retirement plan in motion when we were in our mid 30's. She retired in her 40's I retired early at age 54. 24 years later the same as you our portfolio has grown. Not super wealthy but able to live in retirement as we had envisioned.
 
Trade said:
"I am more concerned with the return of my money than the return on my money."

Will Rogers
Click to expand...

will rogers never had to live up to 30 years in retirement and battle inflation and mega buck health and dental expenses .

he also said buy land , they are not making anymore of it . boy he was wrong about that too . battery park city in lower manhattan sits right where the water used to be . they created more land right in the water ....

he had all these nifty sayings which sounded so good but really turned out wrong ha ha ha
 
.

Today, I am taking out a new 5 year CD at 3.75% interest.

This type of investing works well for simple frugal me. I get a decent return to help with my living expenses while my money is safely FDIC insured and I can put a different POD [pay on death] on each CD which enables that money to go immediately to that specific heir after my death without going through probate.

.
 

You must log in or register to reply here.

Back
Top