SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Ask Michael Burke
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Knighty Tin who wrote (119089)8/10/2009 1:36:44 PM
From: Tommaso  Read Replies (1) of 132070
 
In May of 1999 I posted:

"It's not just companies. Millions (I think it's millions) of non-profit employees who contribute to TIAA-CREF have the option to switch their entire pension contributions to stock funds, and many of them are 100% in equities. Some have been extremely lucky. Those who have switched out and into a fixed annuity for the rest of their lives in the last year or two (as did my next-door neighbor, who knows and cares nothing about economics or individual stocks)are very well fixed. Their incomes are well above what they were making before they retired.

But those who are presently about ten years from retirement and who are 100% in equities may be terribly disappointed. There are some very complacent persons aged 50-60 in the educational system. They were badly frightened last fall, but gleeful since then, and still confident that 15-20% increases in their accumulations will continue to the limits of their working horizons. "


Incidentally, at that time I put most of my wife's CREF into the inflation-protected bond fund, which has had a 94.20% total return since 1999, as opposed to CREF Stock (total return of -19% for the same period), the CREF Growth Fund down an incredible -44.71% for cumulative total rate of return, and even the bond fund with a total return of positive 65%. Money market sort of broke even with 37.54% positive total return. This is all for the last 10 years.

These results completely explode the complacent buy-and-hold advice. But I think I recall that you and I both thought in 1999 that there were millions of "investors" who really did not understand what they were into or why they had done so well for the previous seven years.

The situation for retired holders of the CREF stock funds is even worse than it appears from the numbers above, because their payments have been reduced by 40% to 50% from what they were a year ago.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News