401K and the market

[Kestas]

Up until 10 years ago the following was true for investors:

- (After the Great Depression) Over the long run, stocks on average will always go up. The only exception was when it went down for two years back in the 70s.

- The price of homes has always gone up. The only exception was 1982 when the price of homes fell in the Detroit area.

I wish I had shoved it all in a mattress back in 2000.

 

[Win]

Sure, one can buy real estate at the wrong time, wrong place, overpay for it, markets can get overbuilt, just as surely as one can strike out in the stock market. It all takes acumen.

But it's wrong to say that that there have been protracted periods of flat or actual dimunition in value in real estate comparable to the periods of flat to stagnant growth, to outright going in the tank, as in the stock market.

 

[PandaBear]

Originally Posted By: Shannow
That's not bad advice for anyone.

Although I have heard youngsters at work (under 30) talking about "why bother ?"...borrow for everything you need (want), and by the time inflation kicks in, your loans are worth that much less.

(wonder where they got that idea ?)


Our parents and our government?

 

[PandaBear]

IMO people who didn't know how to time the market do not deserve to be investing in the stock or fund market. Not to pick individual stock, they should at least check a couple times a week AND HAVE THE DISCIPLINE to know when to exit and enter. You may miss some, but in the long run will be better than following the wall street advice on high cost mutual fund.

For the average Joe, paying off loans early are the lowest risk, highest return investment. Where else are no risk tax free average return investment?