196

16790 readers

1777 users here now

Be sure to follow the rule before you head out.

Rule: You must post before you leave.

^other^ ^rules^

founded 2 years ago

MODERATORS

[email protected]

1138

Lotterule (lemmy.world)

submitted 1 week ago by [email protected] to c/[email protected]

119 comments fedilink hide all child comments

you are viewing a single comment's thread
view the rest of the comments

[–] [email protected] 1 points 1 week ago (1 children)

For the last year or so getting a 5% (1-3 yr) CD was not unheard of, so literally leaving it in a bank account is better than the annuity option by the above poster's math.

[–] [email protected] 1 points 1 week ago

I don't think you quite understand what I mean. You can't extrapolate from the last 3 years. What you can extrapolate from is longer periods of time, where we occasionally see assets going generally down for some time. So you have maybe 90% chance of your stock portfolio going up in the next 5 or 10 years, and 10% chance of it going down (rough numbers but the point holds).

So you can end up in a situation where you lose money, but it's unlikely. If you are very risk averse, you would prefer a 0% increase over these odds.