[extropy-chat] who wants to be a millionaire?

[Mike Lorrey]

--- BillK <bill at wkidston.freeserve.co.uk> wrote:
> 
> But Robert was talking about interest rates *above* the inflation
> rate. That's why I claimed that his 6% rate was too high for the real
> world.

I wouldn't say so. Heck, even US 90 day T-Bills are going for 7% right
now, which is pretty low historically, and that is tax free income.
Inflation is currently under 2.5%.

Investing in a broader basket of Dow, NYSE, and NASDAQ index funds,
switching between those and bond funds/hedge funds should return an
average yeild over time of at least 10%, if not more. Looking for a 100
year return is going to ignore short term blips like the last three
years.

> 
> To continue the example, if you can get a secure investment paying 5%
> pa *after tax and expenses* then you would be earning 2% above the
> average inflation rate.
> This would make you a real millionaire in 'only' 268 years.

What exactly are you calling a "secure" investment? Do you really think
the US government is going to be around a century hence? Bonds are only
secure in a 90 day time frame out to a few years, maybe a decade or so.
Given the high technological risks of the coming decades, I think that
government bonds are a very poor long term risk. Better to ride the
wave of change.

=====
Mike Lorrey
Chairman, Free Town Land Development
"Live Free or Die, Death is not the Worst of Evils."
                                       - Gen. John Stark
Blog: http://www.xanga.com/home.aspx?user=Sadomikeyism


	
		
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