Sunday, May 22, 2016

Just Say No to Money Mistakes

May 21, 2016
The money mistakes even the rich make individual who invests $10,000 per year at a 10% annual return from ages 30 to 36...

Ah, the wonders of youth. I'm 51. My memory may not be what it once was, but I can still remember one particular day when I was 30 to 36 though. The date was March 27, 2000. My biggest regret in life is not putting my entire retirement nest egg in the PowerShares QQQ ETF when I had the chance, for if I had, I would not be where I am today.

QQQ Closing Price (adjusted for dividends and splits):

03/27/2000: $106.61
05/21/2016: $106.47

Total Net Loss: 0.13%

For those keeping track at home, that's more than 16 years of nothingburger (unless one factors in not keeping up with inflation, which would make it a s%^tburger).

Where would I be today? Seeking out even riskier assets? Gambling in Vegas? Desperately swinging for the fences? Living out of a cardboard box? Who can really say for sure?

It's all water under the bridge though. In today's rich yield environment, only a fool can't count on 10% returns. Start with 3-month treasury bills yielding 0.31%, add some 30-year treasury bonds yielding 2.63%, and then simply fill in the gaps with the proven growth opportunities found in the Nasdaq 100. You simply can't lose.

10%? Piece of cake.

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