No. of Recommendations: 0
CAGR is Compounded Annual Growth Rate. If a stock or stock fund's total return is near the market's historical average of 11% why wouldn't you want to put all your money into that type of thing. The typical answer is that the 11% isn't guaranteed at all and there have been short periods where the returns from stocks was low.

Money market returns are alot like suped up savings accounts where you'd get something around what a short Treasury is paying, perhaps more in some credit risk cases and that is why in recent years money market returns may look great but they too can go down as the return from them depends on where they can find investments earning 6-7% as they too have expenses that eat into the return in most cases.

JB
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement