Why are you using numbers like 7% and 10% when the ten year is only yielding circa 4.35%? And most people in America don’t have any money left at the end of the month to invest. Housing prices have doubled. Food prices are far higher due to monopolistic practices. Gas prices are through the roof. Go live with a working family for a month and see how much money they have to live on and I think you’ll understand why they don’t think about investing. They are trying to survive. The way you write comes across as if you think they aren’t smart enough to have goals. I think you are completely out of touch with the majority of Americans.
Individuals are terrible savers for two reasons. First they want things now, and are quite self indulgent as there are messages everywhere that say “you can have it now”Second, they assume the future will take care of itself.
Finally, everyone’s budgets are squeezed now by inflation and far too many worry about paying for necessities. Wages aren’t rising faster than inflation.
Because 7% real is the long term rate of return in the stock market. For savers not needing the money for several decades, they should put savings into stocks. The iffy thing is how to position yourself when you begin to see cash withdrawal needs i. 5-10 years.
Why are you using numbers like 7% and 10% when the ten year is only yielding circa 4.35%? And most people in America don’t have any money left at the end of the month to invest. Housing prices have doubled. Food prices are far higher due to monopolistic practices. Gas prices are through the roof. Go live with a working family for a month and see how much money they have to live on and I think you’ll understand why they don’t think about investing. They are trying to survive. The way you write comes across as if you think they aren’t smart enough to have goals. I think you are completely out of touch with the majority of Americans.
Individuals are terrible savers for two reasons. First they want things now, and are quite self indulgent as there are messages everywhere that say “you can have it now”Second, they assume the future will take care of itself.
Finally, everyone’s budgets are squeezed now by inflation and far too many worry about paying for necessities. Wages aren’t rising faster than inflation.
This is terrifying, for some reason they don’t teach this in schools
Because 7% real is the long term rate of return in the stock market. For savers not needing the money for several decades, they should put savings into stocks. The iffy thing is how to position yourself when you begin to see cash withdrawal needs i. 5-10 years.