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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
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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
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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
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