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Join Date: Jul 2006
Posts: 11,401
It's a function of math and probability.
There are far more 10 year periods than 20 year periods. There are even fewer periods of 30 and 40 years. When you input a shorter period you are analyzing a bigger (and more reliable) sample. When you pick a longer period, and a smaller sample, the probability of selecting an outlier that skews the results is higher.
It might also speak to the need to have your equity investment sit in the market through more so-called 'business cycles'.
I know from personal experience that the money I so ignorantly invested in a front-end-load fund about 30 years ago would not have done as well as it has if I had pulled it out at 10 years.
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,304
The graphs alone may answer your question...the magic of compounding over many years (more upside, less downside over time based on past history).
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No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57 Target AA: 50% equity funds / 45% bonds / 5% cash Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)