Quote:
Originally Posted by Mr.Coffee
You say I have a short-term view and then show me a 115 year chart. How long are you planning on living? The great depression lasted almost a decade of stagnated or negative growth.
Anyway I don't claim to know the answers, and certainly it is likely that buying an index and letting savings grow is likely the best plan, but I was just trying to point out that it doesn't mean it can't come with risk. And just because you show me a chart of 115 years, what did the past 400 years look like? Are you telling me that global economies are just forever up and to the right?
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If you look at any rolling 30 year period through this time, which is more realistic as to your point, annual returns vary between 8 and 14%.
I don't claim to know the answers either, only my opinion based on data. If I were a betting man I'd say that paying off your mortgage in the long term is going to significantly underperform a global, diversified portfolio of financial assets at current rates.
If you can't stomach volatility then that's a different story I suppose.