I Bonds were paying over 9% if purchased recently. I grabbed 10k of them for myself and my partner for the electronic bond limit.
Buying just a simple shares in cheap fee index tracking FTEs like for the SP500 would have netted you ~40% in less than 3 years.
The vehicles for wealth building not only still generate significant returns, they do so when interest rates were incredibly low by historical standards. Since you mention “just timing”, it is silly to ignore that with “just timing” recent events you could have as a millennial bought a house or refinanced one at 2.5%, gotten into other assets on loans when the prime rate hit zero, and then benefited off of a meteoric rise by simply putting assets into simple low cost investments.
The stock market by comparison in the boom of the dot com era would give you about the same sp500 growth in 3 years as I just outlines in “just timing it”, around 40% from 1997 to late 1999.
Markets are easy to look back at historically and define ease of success. The picture you painted shows an unfair representation of that ease as well as not indicating the same gains in the same time with even better interest rates were available to all of us recently.
It is not randomly generating it. It’s moving it around from other places, but even then I agree it’s not available to many.
As with most disruptive world events, it benefited those with wealth that was not already tied up in living. If you were a millennial with a house down payment and a 6 month safety net in cash when Covid hit, you had opportunity to grow your assets by close to if not more than 100% in 3 years. If you didn’t, you watched as the world burned and you took job losses as well as draining money you had to pay rent.
The data though, shows an interesting thing. The amount of free cash available to Americans in accounts as cash went up starkly. Double digit percentage rise in free available assets kind of starkly. So much so it is only now returning to previous Covid levels. The vast majority of checking account cash is tied up in middle income households. So anecdotally I would agree that the last 3 years were a real rectal widening experience that arrived unlubed, but the data at a macro level shows people have more cash on hand and had it during the breadth of the pandemic, than they did before it.
All this to say, there should be an increase in bond buying availability for the majority of potential investors with a bank account, not less. I work on the financial sector so take that bias with the grain of salt it should merit.
I Bonds were paying over 9% if purchased recently. I grabbed 10k of them for myself and my partner for the electronic bond limit.
Buying just a simple shares in cheap fee index tracking FTEs like for the SP500 would have netted you ~40% in less than 3 years.
The vehicles for wealth building not only still generate significant returns, they do so when interest rates were incredibly low by historical standards. Since you mention “just timing”, it is silly to ignore that with “just timing” recent events you could have as a millennial bought a house or refinanced one at 2.5%, gotten into other assets on loans when the prime rate hit zero, and then benefited off of a meteoric rise by simply putting assets into simple low cost investments.
The stock market by comparison in the boom of the dot com era would give you about the same sp500 growth in 3 years as I just outlines in “just timing it”, around 40% from 1997 to late 1999.
Markets are easy to look back at historically and define ease of success. The picture you painted shows an unfair representation of that ease as well as not indicating the same gains in the same time with even better interest rates were available to all of us recently.
Casually dropping 20k isn’t in 95% of people’s ability.
Never said it was.
It is not randomly generating it. It’s moving it around from other places, but even then I agree it’s not available to many.
As with most disruptive world events, it benefited those with wealth that was not already tied up in living. If you were a millennial with a house down payment and a 6 month safety net in cash when Covid hit, you had opportunity to grow your assets by close to if not more than 100% in 3 years. If you didn’t, you watched as the world burned and you took job losses as well as draining money you had to pay rent.
The data though, shows an interesting thing. The amount of free cash available to Americans in accounts as cash went up starkly. Double digit percentage rise in free available assets kind of starkly. So much so it is only now returning to previous Covid levels. The vast majority of checking account cash is tied up in middle income households. So anecdotally I would agree that the last 3 years were a real rectal widening experience that arrived unlubed, but the data at a macro level shows people have more cash on hand and had it during the breadth of the pandemic, than they did before it.
All this to say, there should be an increase in bond buying availability for the majority of potential investors with a bank account, not less. I work on the financial sector so take that bias with the grain of salt it should merit.