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47
The S&P 500 is no longer able to keep up with inflation, so even if you invest in the stock market, you're still losing money to inflation (media.scored.co)
posted 119 days ago by RhodesianRidgeback 119 days ago by RhodesianRidgeback +47 / -0
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– Stagecoach 20 points 119 days ago +20 / -0

This jpeg post is not representative of inflation. US inflation went up 60% over the past 20 years, while the S&P rose 434% in that same timeframe. You'd have to be an idiot to believe this post title.

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▲ 5 ▼
– biggusniggus 5 points 119 days ago +5 / -0

This is true, but you would have had to make the right stock picks for this. The majority of the companies that have been on the S&P no longer exist. You can always index fund it, but I'm not seeing the majority of index funds beat or match the S&P.

Plus, it's a shitty method of retirement. It always goes up, sure. It can take 6-13 years to catch up after a large wipe out, and timing can be a huge issue. People should lean more into bonds as they close in on retirement age, but even then there's a pretty big mix.

Not to mention, the mag 7 is pretty much being propped up by passive investment tools. When the market corrects, it's going to be people with 401ks that eat shit.

This casino is not rigged in your favor. If the destruction of money stopped, people could budget and save. Why is it that we had almost 200 years of no (some inflation/some deflation) inflation, and after we get a central bank we lean heavily into usury and inflating our way out of debt to the detriment of the majority of working people.

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▲ 11 ▼
– Stagecoach 11 points 119 days ago +11 / -0

Have you invested before? ETFs like SPY are literally designed to index the S&P 500, and they have shown a pretty good track record too. SPY went up 700% during the past 20 years. And it doesn't matter if the companies on the S&P change over time, because the ETF handles the stock picks for you.

Obviously you move your portfolio into lower risk options when you're close to retirement, but when you're young there's no reason not to invest. The growth of the stock values doesn't need to match or beat the S&P; hell, it doesn't even need to beat the inflation rate if they're paying dividends. And if you're using tax advantaged accounts like a Roth IRA or HSA, then even better. Not having to pay any taxes on your growth makes a pretty huge difference in the long run.

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