Blue Collar Guy
Thinks s/he gets paid by the post
How to keep your retirement on track if John Bogle is right about 4% stock returns - MarketWatch, wish i read his book when i was younger, better late than never
How to keep your retirement on track if John Bogle is right about 4% stock returns - MarketWatch, wish i read his book when i was younger, better late than never
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Most of the return you will get out of a portfolio, frankly, comes from steady, sustained contributions over the years, not from the stock market itself.
Every dollar you put in grows that year and each year thereafter. The cumulative effect swamps any given year's gains from stocks alone.
Or looking at it backward, reducing spending in retirement by $1 a year requires $25 less accumulated savings.What I read was: A steady investment program trumps a one time buy-in.
So: Frugality > Stock returns > Bonds
Given the current state of the market, probably:
Frugality >> Stock returns > Bonds
What I read was: A steady investment program trumps a one time buy-in.
I've always interpreted "from one's contribution" to literally mean that. If you contribute less regularly than I do, I accumulate more $$$.Hmm.... This quote from the article has me a bit confused. In the first paragraph he says most of the return does not come from the stock market itself but from one's contributions. (Are one's own contributions a legitimate 'return'?)
But, in the second paragraph he attributes the return from year after year after year of growth from the dollars one puts in. Well, isn't that growth from the stock market (or whatever market one is invested in)
It seems poorly worded to me and confusing for the novice.
Did I miss some obvious insight?