"The real crime is claiming 7.75% return is achievable over the long term. "
I Heart CRbot | Tue, 03 Mar 09 18:03:25 -0600 | #
Unfortunately, finance textbooks have been saying that that's the equity premium over the risk-free rate of return for at least 20 years. I can see how people might get confused. Two problems; I don't think there has been statistically meaningful validation of the equity premium:), and at some point market timing comes into play, when the pension has to start paying out.
From DShort - the Dow has been flat 43 years...(but so much excitement in between).
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