Monday, September 5, 2011

XKCD on investing

What's sad is how frequently a guy with a calculator and basic math skills can take down large chunks of conventional wisdom.

1 comment:

  1. The key to compound interest was either:

    1) high rates of return (~8%) that were only available for a short period (basically, the Baby Boom trying to buy up assets for retirement so too much money was chasing too few investment vehicles

    2) Shockingly long periods of time. Even this start to look suspect at 2% real rates of return (doubling time = 36 years).

    Currently, I am in the happy position of having put more money into TIA-CREF than my account is valued at. I understand investment horizons but I also understand "off to a bad start". :-)