Podcast: Play in new window | Download Subscribe: Android | Email | Google Podcasts | RSS
Or… Are you missing out on millions of dollars for your retirement?
After deciding to save and invest, the most important investment decision of your life, in Paul’s opinion, is what this podcast addresses. Of the Millennials investing in 401k plans, nearly 25% are refusing to take the risk of investing in stocks (equities) and are choosing only to invest in bonds (fixed income), which they see as “secure”. Secure as bonds may be, Paul is concerned that young investors are missing out on what could be millions of dollars difference in their retirement savings. He makes a strong case that the worst of equity returns are better than the best of fixed-income returns. In comparing the returns of four major U.S. equity asset classes with three fixed-income asset classes, it is clear that those — especially in their early years — who do not “take the risk” of investing in equities — will lose out on significant increases to their long-term retirement plan, based on historical evidence. The point is, if you’re going to bother saving and investing for your future, why not maximize your returns with little additional risk, especially when you have time on your side?
To better understand the difference between equities and fixed asset class returns, download these two pdfs, or see them at Paul’s website.
