from 73 to 82 inflation probably averaged very close to 8% a year
CPI based on the way it was calculated in 1990 is about 6% for 2012
CPI based on 1980 methodology is around 10% for 2012
since politicians manipulate it to pay less for social security etc. the official rate is 2% or around there.
wouldn't matter if interests rates weren't manipulated too, but they are. I think I'm off my soap box.
My opinion for OP find a pro to manage it who believes in capital preservation and when the market has a PE of around 10 (trailing earnings not future earnings) and dividends in the S&P 500 are 6% or so, then take on more risk.
Until then defense is the way to go, 3-5% returns w/o losing 40% like in 08 (to get back to even you would need a 60+% return, that takes years). Heavy losses destroy your ability to get a compound rate of return.
CPI based on the way it was calculated in 1990 is about 6% for 2012
CPI based on 1980 methodology is around 10% for 2012
since politicians manipulate it to pay less for social security etc. the official rate is 2% or around there.
wouldn't matter if interests rates weren't manipulated too, but they are. I think I'm off my soap box.
My opinion for OP find a pro to manage it who believes in capital preservation and when the market has a PE of around 10 (trailing earnings not future earnings) and dividends in the S&P 500 are 6% or so, then take on more risk.
Until then defense is the way to go, 3-5% returns w/o losing 40% like in 08 (to get back to even you would need a 60+% return, that takes years). Heavy losses destroy your ability to get a compound rate of return.