Quote:
Originally Posted by bizaro86
The assumption that stock market returns will continue to suck, basically. Many people in their 20s/early 30s haven't really seen positive returns over their investment lifetime.
In 2000 the TSX peaked 11,388 and it's now only at 12,770, or ~1% appreciation per year (excludes dividends). We're also below the high for 2006, so a 6-7 year buy and hold investment has been a negative. Many people my age (late 20s) are anti-stocks since they've never worked out for them. I know a lot of people who have TFSA/RRSP accounts stuffed with GICs/high interest savings accounts, which is crazy for someone in their 20s, imo.
Personally, I think the "lost decade" means stocks are a better bet going forward than they were in the past, but I'm definitely still hedging my bets and putting money towards my non-tax deductible mortgage. That means I don't end up maxing either my RRSPs or mortgage pre payment, but it feels like a reasonable mix to me. I'm not at the fotze level where money just rains down...  |
Well the whole "lost decade" is nearly meaningless though. It sounds good for the media and I suppose if you invested in index funds then ya, you had that result. Its not the case for most people though.