Comments on The Hawk and the Mouse - Saving for Retirement

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The golden way is still the savings-accrued interest way!

posted by mariantonia on September 23, 2004 at 12:08 AM | link to this | reply

Answer

Thank you for the comments – I hope the following answers your question:  The rate of 10.5% has been used in the illustration for a more conservative view of portfolio returns.  It seems improbable that an investor stays 100% invested in stocks over the long run. However, if an investor stayed 100% invested in the Dow Jones Industrial Average from 1983 through 2003, the average annualized return was about 12.50% (data published by Dow Jones Industrial Average).  The Hawk and the Mouse is just a small story of how a smart saver triumphs over as less educated saver. 

posted by Kemberly on July 27, 2004 at 7:37 AM | link to this | reply

Interesting little story, but what gives you 10.5% interest for 50 years that will let you invest only $356?

posted by Kay-Ren on July 26, 2004 at 3:30 PM | link to this | reply