Quote:
Originally Posted by Clever_Iggy
This really is counter to my experience. I don't invest in anything fancy - mutual funds, basic indexes, etc - through SunLife. I just looked back at my previous 6 years and I averaged 15.6% ROR. The past 3 years (the "downturn") has been 13.7 (2014), 9.9 (2015) and 12.26 (2016).
These are not GICs and therefore not guaranteed, but if you're blown away by 7% ROR, I agree, find a new investment advisor.
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There was an article here in Australia about housing price growth over the last 20yrs in the City I live, it was 3-4% growth per year. Looking at the ASX200 growth over the same period it was 3-4%. Seemed about right. Difference between the two asset classes was the leverage you get in a home multiplies that 3-4% to 12-16% when levered 4:1.
Warren Buffet also recently won "The Bet" against the hedge funds. The premise was that his S&P index fund could outperform any hedge fund in the US over a 10yr period. In the 9th year his cumulative return has been 85.4% (7.1%/yr) with the closest hedge fund at 62.8% and the other competitors significantly below that.
http://www.berkshirehathaway.com/letters/2016ltr.pdf (Pg 20-22 for The Bet)
Clever Iggy you seem to be doing quite well. Over the last 6yrs the S&P fund in Buffet's bet has returned 12.4%/yr. Even subtracting management fees 0.14% for Vanguard and 2-3% for Sun Life.