Reply to Dave ramsey

Forum Index » Money and Finances

Reply to "Dave ramsey"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]
That's a myth.  If you left your accounts alone and kept investing right on through the recession, you did just fine.[/quote]

Sure. but you'd have done even better to have spent the time leading up to the recession paying off your debts instead of investing that money. Then, when you paid your debt off a couple of years later, you could have bought in while the market was low and been further ahead.

That sounds like market timing because it is. That's the whole point. We don't know the future, and you can't time the market. The fact that someone missed out on the last year of growth because he or she was instead paying down debt seems like a really good point right now, but it was over a small window and things could just as easily gone the other direction.[/quote]

^^Applause for someone who actually GETS IT.[/quote]

The above scenario is false. Money invested in a total market index fund immediately before the crash would have returned an average of 8% annually. That's 10 years out from the worst market hit in a century and unless you have an insane interest rate you would still have been better off putting that money in the market. Things could not  have "just as easily gone the other direction" - it's not inconceivable but past performance has shown it incredibly unlikely.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics