rickmerrill wrote:Great story about you grandfather!
So it looks like you were self-taught.
racy wrote:My mother taught us kids the value of work (specifically piece work!): she paid a penny for every sand burr we pulled from the lawn. So, we learned that work results in money. The bigger lesson came in college when I learned about compound interest. That's when I saw that steady investing over time results in even more money.
I'm trying to pass this along. I work at a megacorp and we hire many young people. After their training, I have a one on one with them to go over job expectations, etc. I finish with a spreadsheet illustration of how they can become millionaires by participating in our defined contribution plan.
Grt2bOutdoors wrote:What growth rate are you using to get to that million? I hope it's not the standard 8 percent!
mptfan wrote:Grt2bOutdoors wrote:What growth rate are you using to get to that million? I hope it's not the standard 8 percent!
Why not? 8% is a conservative estimate... according to Vanguard's portfolio allocation models, an investor with an allocation of 80% stocks and 20% bonds between 1926 and 2011 would have gotten an average annual return of 9.4%.
https://personal.vanguard.com/us/insigh ... llocations
Who taught you about money?
Grt2bOutdoors wrote:mptfan wrote:Grt2bOutdoors wrote:What growth rate are you using to get to that million? I hope it's not the standard 8 percent!
Why not? 8% is a conservative estimate... according to Vanguard's portfolio allocation models, an investor with an allocation of 80% stocks and 20% bonds between 1926 and 2011 would have gotten an average annual return of 9.4%.
https://personal.vanguard.com/us/insigh ... llocations
Have you earned 8% over the last ten years without taking undue risk? I liken the 8% number as the Dave Ramsey 12% returns. It's a number, but not a conservative one and given all the predictions about the prospective real returns across all asset classes, you may be pushing it with 8%. Just ask the state and corporate pension funds - they would die to get an 8% return on their money.
Grt2bOutdoors wrote:mptfan wrote:Grt2bOutdoors wrote:What growth rate are you using to get to that million? I hope it's not the standard 8 percent!
Why not? 8% is a conservative estimate... according to Vanguard's portfolio allocation models, an investor with an allocation of 80% stocks and 20% bonds between 1926 and 2011 would have gotten an average annual return of 9.4%.
https://personal.vanguard.com/us/insigh ... llocations
Have you earned 8% over the last ten years without taking undue risk? I liken the 8% number as the Dave Ramsey 12% returns. It's a number, but not a conservative one and given all the predictions about the prospective real returns across all asset classes, you may be pushing it with 8%. Just ask the state and corporate pension funds - they would die to get an 8% return on their money.
Grt2bOutdoors wrote:Have you earned 8% over the last ten years without taking undue risk?
EternalOptimist wrote:Grt2bOutdoors wrote:mptfan wrote:Grt2bOutdoors wrote:What growth rate are you using to get to that million? I hope it's not the standard 8 percent!
Why not? 8% is a conservative estimate... according to Vanguard's portfolio allocation models, an investor with an allocation of 80% stocks and 20% bonds between 1926 and 2011 would have gotten an average annual return of 9.4%.
https://personal.vanguard.com/us/insigh ... llocations
Have you earned 8% over the last ten years without taking undue risk? I liken the 8% number as the Dave Ramsey 12% returns. It's a number, but not a conservative one and given all the predictions about the prospective real returns across all asset classes, you may be pushing it with 8%. Just ask the state and corporate pension funds - they would die to get an 8% return on their money.
Everyone is entitled to their opinion, it's their life. Everyone's situation is different, not everyone is driven by fear and conservatism. Relying on history coupled with the interest in making progress in life is a good thing. After all, it's only life --not fatal, not final
Grt2bOutdoors wrote:mptfan wrote:Grt2bOutdoors wrote:What growth rate are you using to get to that million? I hope it's not the standard 8 percent!
Why not? 8% is a conservative estimate... according to Vanguard's portfolio allocation models, an investor with an allocation of 80% stocks and 20% bonds between 1926 and 2011 would have gotten an average annual return of 9.4%.
https://personal.vanguard.com/us/insigh ... llocations
Have you earned 8% over the last ten years without taking undue risk? I liken the 8% number as the Dave Ramsey 12% returns. It's a number, but not a conservative one and given all the predictions about the prospective real returns across all asset classes, you may be pushing it with 8%. Just ask the state and corporate pension funds - they would die to get an 8% return on their money.
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