Saturday, January 15, 2005

Moron Mail 1/15/05

Duct tape your head before you read this letter to the Strib:

Rate of return
Five years ago today the Dow Jones Average was 11,755. At the end of business on Thursday, it was 10,505.

So much for spectacular returns if we put Social Security into the stock market.
C.A. Emdy, Bloomington

#1: If you started saving for retirement 5 years prior to retirement age, and put all of your money in the stock market, you are a moron;
#2: If you started saving twenty years ago, and you did put all your money into the stock market, and the growth of your investment tracked the DJIA, you quintupled your investment. Of course, knowing that would involve some historical perspective beyond five years. Morons typically do not;
#3: Stocks are not the only vehicle for investment. Every moron knows that;
#4: Only a moron would get a lower rate of return investing his money himself than would the current Social Security system.

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