“Future stock market returns will be lower than the historical average.”
I’ve been hearing this on Bogleheads (and Vanguard Diehards) for decades, usually from a respected industry guru. The only suggestion to deal with it is to save more and prepare to work longer. I was already working and saving as much as I could anyway, so there was nothing actionable in this for me and no rational reason to worry about it. Turns out these dire forecasts are usually wrong anyway.
Pay off your mortgage before you retire. We did that, and then we bought a second home and decided to keep our beach house and use it as a hybrid vacation home / rental property. This made our quite simple financial picture much more complicated. I’m Ok with it now, but as I age we may decide to simplify the picture.
Dave Ramsey. Back in the day when we had some debt, he would rather you pay off everything before contributing towards retirement accts. Even staying out of the market for a couple years never made sense to me when you can accomplish both tasks at the same time. Time in the market is key!
“Future stock market returns will be lower than the historical average.”
I’ve been hearing this on Bogleheads (and Vanguard Diehards) for decades, usually from a respected industry guru. The only suggestion to deal with it is to save more and prepare to work longer. I was already working and saving as much as I could anyway, so there was nothing actionable in this for me and no rational reason to worry about it. Turns out these dire forecasts are usually wrong anyway.
Pay off your mortgage before you retire. We did that, and then we bought a second home and decided to keep our beach house and use it as a hybrid vacation home / rental property. This made our quite simple financial picture much more complicated. I’m Ok with it now, but as I age we may decide to simplify the picture.
Dont own too much of one stock. We own a lot of BRK.
Dave Ramsey. Back in the day when we had some debt, he would rather you pay off everything before contributing towards retirement accts. Even staying out of the market for a couple years never made sense to me when you can accomplish both tasks at the same time.
Time in the market is key!
Good one, Catherine!