Comments on: Can the Market Make You Rich? http://www.joetaxpayer.com/can-the-market-make-you-rich/ Financial Commentary For The Average Joe Thu, 09 Feb 2012 00:23:50 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: » 50 Personal Finance Bloggers To Watch In 2010 | Credit Wise Info http://www.joetaxpayer.com/can-the-market-make-you-rich/comment-page-1/#comment-28925 » 50 Personal Finance Bloggers To Watch In 2010 | Credit Wise Info Sun, 27 Feb 2011 00:15:42 +0000 http://www.joetaxpayer.com/?p=2090#comment-28925 [...] Joe  Taxpayer: Great blog for investing topics, and another useful blogger! Recent post: Can a Market Make You Rich? [...] [...] Joe  Taxpayer: Great blog for investing topics, and another useful blogger! Recent post: Can a Market Make You Rich? [...]

]]> By: -> 50 Personal Finance Bloggers To Watch In 2010 | Bible Money Matters http://www.joetaxpayer.com/can-the-market-make-you-rich/comment-page-1/#comment-14631 -> 50 Personal Finance Bloggers To Watch In 2010 | Bible Money Matters Mon, 11 Jan 2010 20:08:23 +0000 http://www.joetaxpayer.com/?p=2090#comment-14631 [...] Joe  Taxpayer: Great blog for investing topics, and another helpful blogger! Recent post: Can the Market Make You Rich? [...] [...] Joe  Taxpayer: Great blog for investing topics, and another helpful blogger! Recent post: Can the Market Make You Rich? [...]

]]> By: Weekly Wisdom: The Future Of Financial Freedom | Green funds are the way forward! http://www.joetaxpayer.com/can-the-market-make-you-rich/comment-page-1/#comment-12221 Weekly Wisdom: The Future Of Financial Freedom | Green funds are the way forward! Sun, 29 Nov 2009 15:39:22 +0000 http://www.joetaxpayer.com/?p=2090#comment-12221 [...] account and size of your contribution affect your future? Joe Taxpayer has the goods in the post, Can the Market Make Your Rich. You might want to check out Eliminate The Muda for the first part of Compound Interest: Friend or [...] [...] account and size of your contribution affect your future? Joe Taxpayer has the goods in the post, Can the Market Make Your Rich. You might want to check out Eliminate The Muda for the first part of Compound Interest: Friend or [...]

]]> By: B7 http://www.joetaxpayer.com/can-the-market-make-you-rich/comment-page-1/#comment-12218 B7 Sun, 29 Nov 2009 14:13:12 +0000 http://www.joetaxpayer.com/?p=2090#comment-12218 There is one small problem with this analysis. It ignores inflation.Even an 8% return is reduced to about zero after inflation is calculated. This post explains why. http://www.onlineinvestingai.com/blog/2009/03/30/the-hidden-danger-of-inflation/ Another issue that this analysis ignores is emotion. All of our decision making is done with our emotions. Most people cannot stand the pain of seeing their life savings drop 50%, 60% or 90%. Yet, most people who invest for 50% will see this happen to their portfolio. There is one small problem with this analysis. It ignores inflation.Even an 8% return is reduced to about zero after inflation is calculated. This post explains why.

http://www.onlineinvestingai.com/blog/2009/03/30/the-hidden-danger-of-inflation/

Another issue that this analysis ignores is emotion. All of our decision making is done with our emotions. Most people cannot stand the pain of seeing their life savings drop 50%, 60% or 90%. Yet, most people who invest for 50% will see this happen to their portfolio.

]]> By: Credit Card Chaser http://www.joetaxpayer.com/can-the-market-make-you-rich/comment-page-1/#comment-12018 Credit Card Chaser Wed, 25 Nov 2009 05:02:58 +0000 http://www.joetaxpayer.com/?p=2090#comment-12018 Just goes to show that even just one large "Black Swan" negative event can do quite a bit of damage to portfolios that are at a certain stage. Just goes to show that even just one large “Black Swan” negative event can do quite a bit of damage to portfolios that are at a certain stage.

]]> By: Financial Samurai http://www.joetaxpayer.com/can-the-market-make-you-rich/comment-page-1/#comment-12015 Financial Samurai Wed, 25 Nov 2009 04:41:01 +0000 http://www.joetaxpayer.com/?p=2090#comment-12015 Yep, that's why so many people say "wow, this recession hasn't hurt me one bit!" It's because these folks probably have only $50,000 or less in their 401k or investment portfolio, so down 50% to $25,000 but up 60% to $42,000 + $16,500 in contributions = Wow, I have $58,500 now! :) Yep, that’s why so many people say “wow, this recession hasn’t hurt me one bit!” It’s because these folks probably have only $50,000 or less in their 401k or investment portfolio, so down 50% to $25,000 but up 60% to $42,000 + $16,500 in contributions = Wow, I have $58,500 now! :)

]]> By: JOE http://www.joetaxpayer.com/can-the-market-make-you-rich/comment-page-1/#comment-12008 JOE Wed, 25 Nov 2009 02:34:48 +0000 http://www.joetaxpayer.com/?p=2090#comment-12008 Another spin, I like that. It's also why my current savings no longer puts a huge dent in the total. The first 25 year really mattered. Now it's the market return that matters more to me. Another spin, I like that. It’s also why my current savings no longer puts a huge dent in the total. The first 25 year really mattered. Now it’s the market return that matters more to me.

]]> By: Financial Samurai http://www.joetaxpayer.com/can-the-market-make-you-rich/comment-page-1/#comment-11998 Financial Samurai Tue, 24 Nov 2009 23:45:48 +0000 http://www.joetaxpayer.com/?p=2090#comment-11998 Your contributions i.e. 401K contributions matter more only up to a certain point. That point is probably around $200,000 where your performance matters more. Why? $16,500 is only 8% of your total. The long run market return is around 8%, so that is your break even. Once you get over $200,000, what matters most is your performance, b/c in this downturn, $16.5k contribution this yr didn't do diddly Your contributions i.e. 401K contributions matter more only up to a certain point. That point is probably around $200,000 where your performance matters more. Why? $16,500 is only 8% of your total. The long run market return is around 8%, so that is your break even.

Once you get over $200,000, what matters most is your performance, b/c in this downturn, $16.5k contribution this yr didn’t do diddly

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