05-01-2009, 06:18 PM
Breand Wrote:I certainly think that the current 401k retirement strategy is incredibly flawed, and puts every American's wealth at the whim of a market with huge spikes and losses. Yet another problem caused by the FED for dropping interest rates so low. Back in the 80s, you could just put your money in a savings account and enjoy 6-8% returns.
Inflation itself would have almost beat your 6-8% savings account. The S&P would have beat that savings account 8 of 10 years and in many of those years, by double digit percentages.
Code:
Year | Inflation % | S&P Return % w Div
1980 | 13.5 | 32.3
1981 | 10.3 | -5.0
1982 | 6.1 | 21.4
1983 | 3.2 | 22.4
1984 | 4.3 | 6.1
1985 | 3.5 | 31.6
1986 | 1.9 | 18.6
1987 | 3.6 | 5.1
1988 | 4.0 | 16.6
1989 | 4.8 | 31.7
"Hamilton is really a Colossus to the anti republican party. Without numbers he is an host within himself. They have got themselves into a defile where they might be finished but too much security on the republican part will give time to his talents and indefatigableness to extricate them. We have had only middling performances to oppose to him. In truth when he comes forward there is nobody but yourself who can meet him. His adversaries having begun the attack he has the advantage of answering them and remains unanswered himself. For God's sake take up your pen and give a fundamental reply to Curtius and Camillas" - Thomas Jefferson to James Madison