Sunday, November 2, 2014

Keeping Savings In Cash Is Costly

Scott Burns says:

The purchasing power of our money is declining about 2% a year.

If you have been invested in a simple, traditional balanced fund that was a 60/40 mixture of stocks and bonds— such as the Vanguard Balanced Index fund that I mention regularly— your investment would have nearly doubled over the last 5 years. The recent 5-year annualized return was 13.23 percent.