The Wall Street Journal’s April 4, 2014, ‘Wealth Effect’ column certainly deserves consideration for this honor.
I love the Wall Street Journal (WSJ) and read every issue. I hope someday they will publish one of my articles. When they put out horrible, and unsupported information it is the exception to the rule.
Author Brett Arends’ article is called, “How to Save Your Retirement.” It could do a lot of damage if people take it seriously and follow his directions.
http://online.wsj.com/news/articles/SB10001424052702303847804579477360416057366
Brett began with a simple concept.
- Invest $100,000 in a typical retirement plan (IRA or 401k) at age 25
- Wait 40 years (to age 65)
- See how much cash you have to retire on
Mr. Arends quoted statistics from NYU's Stern School of Business that showed total returns on the S&P 500 from 1926 through 2013 at 9.6% annualized. Over that same 87-year period 10-year Treasury Bonds produced 5.0% each year.
Eighty-seven years is longer than most of our lifetimes. By definition, those figures include multiple bull and bear market cycles along with enormous variations in interest rates and economic conditions.
