That ignores the fact that the broad equity indices lost money over the decade just ended. People have ignored that the Nasdaq has been in a bear market since its 5,000+ peak in March, 2000. Similarly, as of last Friday, the SP500 is still off 484, or 30.7% from its former peak of 1,576.09.
The market will continue to claw its way upwards until people realize that there are other things that they can put their money into, and that the market has become artificially inflated. It will continue to be volatile and troubled. I still have a 15% loss on the preferred stocks I bought in 2008, $41,000, even after offsetting the almost 2 years of dividends I have received, not counting the tax I have paid on the income.
Right, you first set of stats don't include dividends.
The 2nd worst stock market over a 2 year period in history and you're only down 15%. May I suggest CDs if you don't like losing money over a short
term period.
Tom
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Grangaard's strategy allows for the flexibility of increasing or decreasing the number of years in the ladders, but he thinks that 10 years is the optimum.
If I use his method, part of my ladder will be income paying stocks, even though he wants fixed securities in the ladders.
The scary part for me is, say I use his 50-50 example, putting 50% into stocks for the stock part of the system.
For that part of the system, I would be using my 401k.
So the money would be in Vanguard funds, probably the Institutional Index and Windsor funds. Could also use their Explorer fund, but have never liked it.
I have control over my income paying stocks, but have no control over the Vanguard funds.
Would like to read Lucia's book, but it's $30 !!! Maybe the library has it.
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 16,863
This sounds great! Please send your buckets of money, insured, via FedEx, and I will be eternally grateful.
Ha
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