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Old 06-14-2016, 10:59 AM   #21
Franchise Player
Join Date: Dec 2006
Location: Calgary, Alberta

Originally Posted by V View Post
Is this accurate? The TSX is up an annual return of 6.1% since July 1979, and that's without taking inflation into account. So what's that, 3% if you consider inflation?

Kind of makes me want to just pay off my mortgage instead of taking the risk.
Well to do a proper comparison you would also have to factor in the gains of real estate over that timeframe against inflation. The numbers aren't as pretty as you might expect. When you look at the early 1980's in Calgary I think an average house was say $150k? Today that average is generously say $500k...probably less really. So the compound growth is 3.5% over 35 years if you use those figures. Maybe I'm off on the number of years here or the $150k to begin, but from a pure investment perspective that puts you slightly ahead of inflation over the long term.
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