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Lotterule (lemmy.world)
submitted 2 years ago by to c/196@lemmy.blahaj.zone
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[–] 1 point 2 years ago (1 child)

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.

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  • [–] 1 point 2 years 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.

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