Re:Ask the algorithm: Human wealth advisers are going out of...
by tedmiston on Monday September 28, 2015 @11:14AM
(#10290851)
> It doesn't matter how much you dollar-cost average your investments when there's five-ten year runs of negative returns.
But as you can see there isn't a single example on this chart where someone could add to their portfolio over ~50 years and entirely lose money.
> there are extended periods of negative returns entirely possible
I mean, the very worst extended period is the 20-year range from 1961-1981 where -2.0% was lost year over year. I never argued against this, just that over the long run it is smoothed out by positive returns over time.
The comments you're making are much more emotional than fact-based:
- "utter garbage"
- "rationalize a continued belief in compound interest"
- "irrationality is likely to cost you, in your real life, quite dearly"
- "actually engaging with the truth of the market return rate"
The chart itself, and the way virtually every American structures their retirement accounts doesn't reflect your interpretation.
But as you can see there isn't a single example on this chart where someone could add to their portfolio over ~50 years and entirely lose money.
> there are extended periods of negative returns entirely possible
I mean, the very worst extended period is the 20-year range from 1961-1981 where -2.0% was lost year over year. I never argued against this, just that over the long run it is smoothed out by positive returns over time.
The comments you're making are much more emotional than fact-based:
- "utter garbage"
- "rationalize a continued belief in compound interest"
- "irrationality is likely to cost you, in your real life, quite dearly"
- "actually engaging with the truth of the market return rate"
The chart itself, and the way virtually every American structures their retirement accounts doesn't reflect your interpretation.