[quote=UCGal]I agree with CAR about 8% being optimistic. Especially if you’re diversified to mitigate risk.[/quote]
I used the Dow index as my example of diversity and long term return. I just checked out BRKB’s 10 year return and it’s greater than 8% over the last 10 years. So to me, either I’ll buy a DOW index fund, try to beat the DOW with my own set of investments, or trust Buffett and his team. I don’t think I can out do Buffett and his team.
Here one other example for those who thinks 8% is too optimistic. At 4% return, you’ll have $1.47M in 20 years. Or $1.56M after 25 years at 2% return . I’m a firm beliver in the power ofcompound interest. So the sooner you start saving, the higher chance of you amassing a million or two and be able to retire early.
