Another Saturday morning and the "crash proof retirement show" is on my radio. I am always amazed how little they say in a one hour show. They came to a segment where a couple came on the show to say they had just had their annual review and they averaged 5%. I had a sense that was pretty terrible when compared to the market.
So put another way:
Value of a dollar end of (rounded to the nearest penny) 5% growth
Year 1 $1.05
Year 2. $1.10
Year 3 $1.16
Then I looked up the S&P returns for the last three years and calculated the year end balances.
2013 32.39% $1.32
2014 13.69%. $1.50
2015 1.39% $1.52
So if my simple math is correct after three years - the crash proof retirement was down by 20%.
In my mind A high price price for security. Yet they were touting the returns?
Am I off here?
Sent from my iPad using Early Retirement Forum.
So put another way:
Value of a dollar end of (rounded to the nearest penny) 5% growth
Year 1 $1.05
Year 2. $1.10
Year 3 $1.16
Then I looked up the S&P returns for the last three years and calculated the year end balances.
2013 32.39% $1.32
2014 13.69%. $1.50
2015 1.39% $1.52
So if my simple math is correct after three years - the crash proof retirement was down by 20%.
In my mind A high price price for security. Yet they were touting the returns?
Am I off here?
Sent from my iPad using Early Retirement Forum.