TMFMorgan

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TMFMorgan commented on an article. 7:47 PM

What Newspapers Were Saying When You Should Have Been Buying

VTI data from S&P Capital IQ:

Dividend adjusted share price, January 1, 2007: $61.61. Current share price: $84.86.

Return: 37.73%.

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TMFMorgan commented on an article. 6:42 PM

What Newspapers Were Saying When You Should Have Been Buying

One more: All those investors who didn't have enough cash to buy stocks had no problem finding $1.8 trillion to buy bonds.

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TMFMorgan commented on an article. 6:41 PM

What Newspapers Were Saying When You Should Have Been Buying

And that was during the worst recession in 80 years.

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TMFMorgan commented on an article. 6:39 PM

What Newspapers Were Saying When You Should Have Been Buying

^ What index fund do you own? The Vanguard Total Stock Market Index fund returned 37.73% from 2007 to 2013. Inflation took off 12%, so you earned a 25% real return.

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TMFMorgan commented on an article. 5:30 PM

What Newspapers Were Saying When You Should Have Been Buying

Also, it was Wall Street that had to dump assets to meet margin calls in 2008. That's what sunk Lehman Brothers and Bear Stearns.

Only 3% of Vanguard customers cashed out during the financial crisis, according

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TMFMorgan commented on an article. 5:17 PM

What Newspapers Were Saying When You Should Have Been Buying

^ How many guns do you need to buy an index fund?

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TMFMorgan commented on an article. 3:36 PM

What Newspapers Were Saying When You Should Have Been Buying

<<didn't the market go up because someone was buying?>>

Not really. Regardless of whether the market is going up or down, there is always exactly one buyer and one seller per trade. What matters is

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TMFMorgan commented on an article. 6:56 PM

8 Fascinating Reads

commonscents,

Here are the last books I've read:

Mistakes Were Made (But not by me)

Bull!

To Save Everything, Click

Happy

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TMFMorgan commented on an article. 12:20 PM

Why I'm an Optimist

Thanks for the comments all.

Thedigeratilife,

Here's my response:

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TMFMorgan commented on an article. 3:28 PM

Dangerous Retirement Planning Advice From Financial Guru Dave Ramsey

Toby,

Assuming a 12% real return vs. the S&P 500's historic real return of 6.7% when saving $100 a month for 40 years is the difference of $1.2 million vs. $244,000. The issue isn't quibbling over a few

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TMFMorgan commented on an article. 2:57 PM

Dangerous Retirement Planning Advice From Financial Guru Dave Ramsey

<<Are they trying to inspire or are they trying to discourage/ dissuade others?>>

It has nothing to do with discouraging others. Everyone encourages people to save and pay off debt and invest wisely

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TMFMorgan commented on an article. 2:36 PM

Dangerous Retirement Planning Advice From Financial Guru Dave Ramsey

Here's the problem.

When Dave says someone saving $100 a month for 40 years at 12% will have $1.17 million, he's using compound average return.

But when he discusses mutual fund

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TMFMorgan commented on an article. 1:52 PM

Dangerous Retirement Planning Advice From Financial Guru Dave Ramsey

<<This is based off of one tweet-the author admits he has only read a sample of one of DR's book!>>

You don't need to read a full book to know it's disingenuous to use average return instead of CAGR.

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TMFMorgan commented on an article. 1:01 PM

Dangerous Retirement Planning Advice From Financial Guru Dave Ramsey

I would propose a simple challenge to Ramsey.

Out of 10,000+ mutual funds, find how many have posted a 12% real rate of return over 20+ years. Report that number to your listeners. I think they'll be amazed.

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TMFMorgan commented on an article. 3:22 PM

Dangerous Retirement Planning Advice From Financial Guru Dave Ramsey

Good stuff, Brian.

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TMFMorgan commented on an article. 4:50 PM

Will This Finally Get Americans in Electric Cars?

miles,

The audio quality is excellent on my computer. Might be your speakers.

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TMFMorgan commented on an article. 3:26 PM

The Easy Guide to Where Stocks Are Headed Next

<<But,unfortunately consumers are not spending any money because of diminished consumer confidence and lack of job security.>>

Consumer spending is the highest it's ever been, even adjusted for

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TMFMorgan commented on an article. 8:04 AM

Why You Never Learn From Your Investment Mistakes

temp, sfj42,

Here are a few good psychology books:

Your Money and Your Brain (Jason Zweig)

More Than You Know (Mauboussin)

Thinking, Fast and Slow

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TMFMorgan commented on an article. 4:25 PM

"Where Are the Customers' Yachts?" 2013 Edition

^ Thanks. Dang zeros.

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TMFMorgan commented on an article. 3:09 PM

If You Only Know 5 Things About Investing, Make It These

Frank,

Buffett's net worth was $300 million at 50, and $3 billion at 60. Subtract those from the current $60b.