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Jul 28
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I just got got the following email in my in-box attacking the idea stock market deliver? big returns in the long term. It describes how investors end up losing money in the long term.
1997 – Child received $5,000.00 from grandmother’s estate. Invested with Investment Co. 1
2000 – $5,000 investment at $4200.00 – Taken from Investment Co 1 and put with Investment Co 2
2003 – $5,000 is now $3,000.00.
Taken from Investment Co 2, child’s parents added $2,000 to bring same up to $5,000.00.Given to Investment Co 3 (after being advised about the strategy of dollar averaging)
2009 – $5,000.00 Investment is now 12 years old. Worth $5300.00.
Most of us can’t get our heads around six and seven figures but all of us can see what happened to this $5,000.00. Shows what fools we’ve been to believe the blather from the “stocks are great”, crowd. The only people who made money on this kid’s investment were the Bernie Madoff’s etc who charged the child and his parents for “investing” for them. The family would have been better off putting the money in a tin can in the dog house.
