IF WE LISTENED TO THEM, WE WOULD BE MULTIMILLIONAIRES, RIGHT?
Now listen, wealth advisors like to point out the solid returns the market has produced over the last several decades if you look at the big picture.
They like to show you how if you invested a few thousand dollars every year since 1929 how you’d be a multimillionaire.
And sure, if you stripped out all the fees and invested for nearly a hundred years, that would be true.
But curiously, if you look at the last three decades, the length of a typical working career, the average investor putting in 50K 30 years ago only turned it into 147K.
That’s NOT enough.
We live in unparalleled financial times. Just because the S&P did okay over the last 30 years, doesn’t tell us anything about it will do over the next 30.
Right now, as a nation, we have $20 Trillion of national debt-- For perspective, from the Civil war up to the year 2000, we had only about $5 Trillion. So, what does that tell you about the trajectory of our economy?
The federal reserve has kept interest rates near zero for nearly a decade for fear of killing the sick patient that is our economy.
Things have changed over the past few years--we are in uncharted territory. Does it make sense to keep playing in the Wall Street Casino when your future is at stake?
No...of course not.
Whether it’s mutual funds or index funds…