because the 12% return in stock is not possible for 懒人

来源: 于 2014-01-24 15:55:42 [旧帖] [给我悄悄话] 本文已被阅读：次

Wall street boasts 10-12% average return, which is missleading.
Suppose you put in 100, year 1 you have 100% return, year 2 you have -50% return, The average return would be 25%. But your $100 becomes 200, then back to 100. Your actual return is 0%.
Dollar averaging works. Real return in stock market is at probably 7-8% over time.