No. of Recommendations: 0
Right there is the fly in the ointment.

I don't have a time machine, so I can't go back to 1985 and invest money. As you have noticed, investor #2 would not have put very much money in the stock market since 1985.

What did he do with it? Did he get a better return stuffing it in his matress than investing it in the market we had for the past 20 years? I doubt it.

But notice that investor #2 didn't need to put very much in the market. The extra money could have been invested in T-bills or something, so Investor #2 would have ended up with $90,000 compared to Investor #1 with $75,000. And have money in the bank waiting for the next buying opportunity.

Change it from $100 a month to $500 a month, and we're talking about $450,000 vs. $375,000 over the 25 years.

Print the post  


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.
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.