Expect 10-12%? That is great in la la land... never will happen in the real world.
Financial Thread
- Thread starter NATEizKING
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Expect 10-12%? That is great in la la land... never will happen in the real world.
Heck I try trading options in my Roth IRA (ya probably not a good idea). 10-12% annualized average return is doing well but that's close to the long term stock market average. I'm with the other poster in that I think this adviser is probably looking to screw the poster with some high fee "investment".
Money chimp shows me a 1932-2014 Annualized CAGR in the S&P 500 of just over 11%. 8% is more conservative usually due to mixing in bonds, which is an especially bad idea right now.
Money chimp shows me a 1932-2014 Annualized CAGR in the S&P 500 of just over 11%. 8% is more conservative usually due to mixing in bonds, which is an especially bad idea right now.
Good info from everyone, thank you. I probably didn't word that correctly. My financial guy said I should expect a 8% return on a long term Roth and I realize it is a "wrapper" for investments. It sounds like 8% growth isn't out of line and possibly on the conservative side.
8% for long term stock market performance is pretty conservative actually. The Trinity study showed that 4% real return (accounting for inflation) is pretty reliable to count on and is quite conservative. People that like to wet the bed about things like privatizing SS and make statements about the Wall Street casino are wrong. If you derisk your portfolio over time as you get closer to retirement you will do well. If you like to buy it and forget it you can do those retirement date funds, which will shift for you.
I'll come out and say I talk about this stuff all the time and try to learn as much as possible. 8% is great per year and the people saying 10-12% are probably referring to the growth over the past 5 years with has been the 2nd best bull market of the last 100 years. A guy I know we trying to get me to dump everything into biotechnology stocks claiming 26% growth per year. This great but everything reverts to the mean eventually.
8% is just fine. Don't prepare your portfolio to do better than that over 40 years.
Agreed with what some others have said. Those claiming you can get a double digit return are probably referring to the last 5 years, when the dow was trading in the 7,000-8,000 point range and rode a great bull market. The historical average is somewhere between 7%-9% range, and that is if you invest in the one of the indexes (DJIA, S&P, etc). You can try and beat the market by investing in certain companies as opposed to an index or mutual fund, but you may not beat the market that way.
The way the market looks now, the bull run may be cooling off and could get back to a more historical normal. We could end the year on a lower note, the first time in over 5 years.
The way the market looks now, the bull run may be cooling off and could get back to a more historical normal. We could end the year on a lower note, the first time in over 5 years.
Since this is revived, getting life insurance next week, just married no kids. Heard 10x salary + mortgage for 20 year term. Sound accurate?
Depends on if your work has life insurance. But your amount is very good but kind of high. Now use what your term premiums would be but I got mine in the same situation as you and its not as cheap as I was expecting for that much.
Can't remember work but I think it's 1 or 2x salary. 10x salary + mortgage was $29-43 a month when I got online quotes.
I have no idea why mine is so high then. I think I have 250k return of premium for 60/month and my wife has similar for 50/month. Relative is agent so I can't really argue too much
DING DING DING !!! Easiest way to save money. Pay at the pump and leave. No fast food. Take the time to make big meals and eat left overs, you will find favorites. And left overs are much more filling than fast food. A person might lose weight too!!
My wife and I each have 250k policies. 20 year term. It costs me about $13/month and her about $14/mo.
Made my last student loan payment, time for the next move.
I have a traditional retirement match through work with Vanguard, looking to open a Roth and contribute more. Is it worth researching, or should I just open with Vanguard? Seems like they are pretty well regarded, just wasn't sure if anyone had advice on best returns and fees, or where I could find such information without having to dig too much myself. TIA.
I have a traditional retirement match through work with Vanguard, looking to open a Roth and contribute more. Is it worth researching, or should I just open with Vanguard? Seems like they are pretty well regarded, just wasn't sure if anyone had advice on best returns and fees, or where I could find such information without having to dig too much myself. TIA.
I would say just go with vanguard. Their fees are pretty much the lowest when you get to the admiral shares.
As far as low fees, you're probably not going to beat Vanguard index funds. I use Vanguard for my Roth & have been pleased. Depends on what your return requirements are but you can't really go wrong with the tried & true S&P 500 Index Fund.
