Sunday, January 2, 2011

Stock Market Returns

The New York Times has a great graphic on stock market returns for the last 90 years. It shows that stock market returns are not stable until 60-70 years in the market. Also, losing money over a twenty year period is a real possibility.

I am getting the opinion that any money you expect to need within twenty years just shouldn't be in the stock market. Most of my 401(k) money is in stocks(mostly as index funds, plus some international funds). However I don't know if I will be able to justify much money at all in stocks thirty years from now.

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