man that 12% rule of thumb is waaaaayyyyy off, especially considering the meltdown of the last 3 years. No way that ever gets back to 12%, NO WAY
there will always be downturns. And dropping from 12% to 11% and using a real car payment drops dirty sanchez's little fantasy nest egg from 5.5 million to barely $1 million. But hey, no big deal.
FYI - management fees in an index fund will run you about .3% (see Vanguard). In a normal managed fund 0.5-2%. Not really destroying those returns, espcially for the the managed funds that beat their benchmark on a regular basis (Peter Lynch did it for like 15 years in a row). I can't believe I'm having to explain this . . .
I actually only invest in Vanguard funds. They're great, but expecting or assuming 12% returns over 30+ years, even with the minimal mgmt fees, is stupid.
And yeah, tons of Peter Lynches out there. AND THEY'RE SO EASY TO FIND!!!
In sum, you were wrong
I wasn't wrong about anything. You set up a lot of strawmen that you couldn't even back up with real numbers. It was a nice attempt to divert attention from Dirty Sanchez making up bullcac and trying to pass it off as "fact", but it failed.
Not even the 12% mutual fund over the last 40 years???
I DON'T USE STRAWMEN, AND NOBODY ON THIS BOARD KNOWS WHAT THAT MEANS ANYWAYSI'll concede DS embellished, but his point is valid. If you saved a car payment every month for the next 30-40 years, you'd have a pot of cash at the end.
$378 at 12% per year, compounded monthly for 40 years is $4.5 million 30 years $1.3 million
$378 at 10% per year, compounded monthly for 40 years is $2.3 million 30 years $0.9 million
Not exactly chump change, probably enough to send a grand kid to college in 2050 (of course a car payment isn't going to be $378 in 20 years either, somethin' to think about)