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Old 09-07-2016, 07:37 AM   #39
heep223
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Quote:
Originally Posted by Mr.Coffee View Post
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?

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.
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