|
|
04-07-2021, 01:50 PM
|
#61
|
Thinks s/he gets paid by the post
Join Date: Nov 2013
Location: Twin Cities
Posts: 3,941
|
Quote:
Originally Posted by Time2
I've told the story before about my neighbor, that took all his $200k out after 9-11. We were setting at his kitchen table and he brought out his investment statement, and was wondering if things were all right. I looked it over, it was all in cash equivalents, I said, you don't have any stocks, he said yes, I took it all out of stocks after 9-11. That was July of 2019. I said you really should have some stocks! He was hesitant I said, just get your feet wet with $10,000. He has since that kitchen table conversation, missed a 67% gain in VTSAX.
As far as I know he never did buy any staocks, but he did buy a new 4 wheeler for almost $10,000.
Oh, he wasn't even keeping up with inflation with his cash equivalents. But he is safe! Except for the $600,000 he missed in VTSAX since 9-11. I think I forgot to add in dividends.
|
Sad. How can smart people not appreciate compound interest or inflation? There should be a See Dick Run level book on those two concepts for every kindergartner.
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
04-07-2021, 01:59 PM
|
#62
|
Thinks s/he gets paid by the post
Join Date: Sep 2013
Location: Cincinnati, OH
Posts: 4,373
|
Quote:
Originally Posted by Markola
Sad. How can smart people not appreciate compound interest or inflation? There should be a See Dick Run level book on those two concepts for every kindergartner.
|
I don't know who said it but "Compounding is the eighth wonder of the world".
Or related "Those who understand compounding, gain from it; those who do not, lose from it".
__________________
The problem isn't artificial intelligence, it's natural stupidity.
You can't spend yourself to prosperity.
Semi-Retired 7/1/16: working part-time (60%) for now [4/24/17 changed to 80%]
Retired Aug 2, 2017; age 53
|
|
|
04-07-2021, 02:09 PM
|
#63
|
Thinks s/he gets paid by the post
Join Date: Nov 2013
Posts: 1,049
|
Quote:
Originally Posted by 38Chevy454
I don't know who said it but "Compounding is the eighth wonder of the world".
Or related "Those who understand compounding, gain from it; those who do not, lose from it".
|
It has been attributed to some nerd...
Albert Einstein is reputed to have said, 'Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it.'
|
|
|
04-07-2021, 02:11 PM
|
#64
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2011
Location: NC Triangle
Posts: 5,807
|
“The money that money makes makes money.”
__________________
|
|
|
04-07-2021, 03:17 PM
|
#65
|
Full time employment: Posting here.
Join Date: Feb 2007
Posts: 741
|
Quote:
Originally Posted by street
I have so many friends that are scared to death of the stock market. I have asked a few through the years, if they have any mutual funds etc. and they think a person is crazy to have money in the markets.
I can't imagine not being in the markets. There is no way living of off CD's, MM funds can make you a enough to even live a few months on.
Some of them are young and some are in their 60's and all working full time. Some own ranches and some working for a wage.
|
There are many roads that can lead to wealth. Stock market, real estate, gold, Bitcoin, etc. But I do know this.
It really is possible to “save” yourself into the poor house. Due to inflation and other unexpected events, if you just have straight cash for years... then you will most likely not have much left over after you are done working.
Just a question of what sorts of returns are you looking for, how hands on do you want to be, and what sort of time frame are you looking at.
I remember years ago someone did a study and found that for any 30 year period, the stock market has always done better than any other investment, over that time frame. In shorter time frames real estate, precious metals, etc might have done better, sometimes WAY better.
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|