Retirement

If you want to watch one show on retirement, watch this one…

Frontline:  The Retirement Gamble

1) Fees:  Around 26 minutes into the show, there is an example of fees.  Given a $100,000 account that is reduced by just two percent per year (a typical “fee”), at the end of 50 years, that fee would reduce your account by $63,000!!!

2) Index funds:  Around 34 minutes into the show, John Bogle, former CEO of Vanguard says:

Be aware of the mathematical reality… Maybe you may have a one percent chance of beating the market over time.  It has been proven right year after year after year because it can’t be proven wrong.  It is a mathematical certainty.

So…   invest in a simple, index fund – with low management fees and charges!

… and a great quote about John Bogle:  “The only thing that poor guy has going for him is the uncanny ability to recognize the obvious”…

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