QuoteIf you can turn 12% consistently

You do not understand these are long term investments and the average return over 30 years is 12% you could lose 30% in one year and gain 40% the next. There are no guarantees just risk and time. That 12 % figure includes the crash or 29 as it will also include the resent decline by 2010 all will be normal. The problem with today's media is the beta addicted 30 second sound bite population is they can not focus on long term. Everything the consumer has to have now and is not willing to save for it as they just charge it. Then tire of it before it is paid for.

Quote from: lisagurl on October 18, 2008, 09:47:02 AM

QuoteIf you can turn 12% consistently

You do not understand these are long term investments and the average return over 30 years is 12% you could lose 30% in one year and gain 40% the next. There are no guarantees just risk and time. That 12 % figure includes the crash or 29 as it will also include the resent decline by 2010 all will be normal. The problem with today's media is the beta addicted 30 second sound bite population is they can not focus on long term. Everything the consumer has to have now and is not willing to save for it as they just charge it. Then tire of it before it is paid for.

So are you suggesting that people "tire" of thier mortages?

QuoteSo are you suggesting that people "tire" of thier mortages ?

Yes 90% of people sell their homes before they pay the 30 year mortgage. They get tired of living in the same house. It is a consumer item to be replaced by something better. Very few people in the US live in the home of their ancestors. They sell the family farm. The whole concept of art and lasting craft buy involved artist has been replaced by meaningless work preformed by laborers.

Quote from: lisagurl on October 18, 2008, 09:47:02 AM

QuoteIf you can turn 12% consistently

You do not understand these are long term investments and the average return over 30 years is 12% you could lose 30% in one year and gain 40% the next. There are no guarantees just risk and time. That 12 % figure includes the crash or 29 as it will also include the resent decline by 2010 all will be normal. The problem with today's media is the beta addicted 30 second sound bite population is they can not focus on long term. Everything the consumer has to have now and is not willing to save for it as they just charge it. Then tire of it before it is paid for.

Oh no, I understand.  That's what I meant when I used the word "consistently".  I should have been more specific.  We're on the same page.  But seriously, 12 percent is doing really well.  There are brokers that can't do that well.

Cindi

12% is awesome, if you can do that you ought to be doing it as a profession.

QuoteThe average investment club's portfolio had a 14.6 percent return compounded per year over its lifetime, vs. 12.25 percent for the Standard & Poor's index, he says

The Standard and Poor's is a unmanaged index. Professionals do not always beat it. In fact 50% usually fall short. For every winner there is a loser.

But you can buy spiders (symbol SPY) that follow the S&P index.  If you would have purchased them 5 years ago and tried to sell them today, you would have lost money.  Of course... the recent financial collapse is an oddity.  I suspect that if you were to hold them for another 5 to 10 years, you would average 10 to 11 percent over the long haul.

Of course, that assumes that our economy won't completely fall apart in the mean time.

Cidi

Quotecompounded per year over its lifetime

Quotepurchased them 5 years ago

Most long term investments are for 30 years or more. You need to look at those perspectives and plan your life accordingly. That is what you are doing with 30 year mortgages as few people realize. You should also look at it that way when deciding transition.

QuoteOf course, that assumes that our economy won't completely fall apart in the mean time.

Rome did not fall in a day and neither will the United States as Russia had a difficult time but is still chugging. Try to think beta waves in the mind rather than alfa. The fast pace TV and information jungle have bypassed human life and made us all slaves to it.

Posted on: October 21, 2008, 09:35:21 am

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Quote"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered."
Thomas Jefferson 1802

you could lose 30% in one year and gain 40% the next.

That would be a bummer. You'd still be down 2%.

QuoteYou'd still be down 2%.

That is why you need to look at 30 years. Funds sometimes have 4 up years to one down year. The whole illusion of being young is most can not fathom long term. They also think a few years are an eternity as they are very short sighted. The second problem is to think that having sometime in your pocket is safe. Nothing is safe when you are talking about material things.