Archive for the ‘401k & IRA's’ Category

how are your returns?

April 23, 2010

Why Many Investors Keep Fooling Themselves
by Jason Zweig
Tuesday, January 19, 2010 of the wall street journal penned a great article about How high most investors returns are. You can check it out at http://finance.yahoo.com/retirement/article/108608/why-many-investors-keep-fooling-themselves?mod=retire-planning

To summarize the article says that most investors cant earn over 5% or so on thier investments. The Stock market has returned 9.8% since 1926 according to Ibbotson Associates. Can you out earn that figure? After fees, taxes, and inflation the return drops down to just 4%. 4% SUCKS! Just in case you were wondering.

So how do you out earn the US stock market? I use real estate that produces cashflow today to spend or invest and normally will not get out of bed to even look at returns under 20% on a cash on cash basis. I hope you read the article and if you have questions about how to make your retirement better give me a call at 512-782-8982

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