To: pezz who wrote (46377 ) 2/15/2009 1:27:16 AM From: TobagoJack Respond to of 217615 hello pezz, today's report: should have saved so, and perhaps the same methodology will work out going forward: start date 1982 january: gold high, t-bill low, stock low end date, 2009 january: gold flat, t-bill high, stock nowhere duration: 28 years I made three calculations, to determine the relative astuteness of three different ways to prepare for golden years by the man on the street and woman about town, a typical baby boomer / boomerette, by way of annual set-asides in gold, yearly put-away in S&P 500 index, and every 12-months lock-ups in 10-years T-bills held to maturity, all taking account of re-investment of maturing bonds, and fudging same of dividends / interest flows, taxes, management fees, carries, storage etc. Close enough for government work on a foggy Sunday. To introduce some realism, I did the calculations for three different savings profiles (i) A nominally flat annual contribution (10k, 10k … etc) (ii) A 5% increase in annual contribution (10k, 10.5k … so on and so forth) (iii) A doubling of the annual contribution every 5th years (10k/yr for 5 years, 20k/yr for next 5 years, 40k/yr for … ad infinitum ad nauseam And, the results are: Current value of excess savings and surplus capital Savings profile/asset class Flat rate (280k total contribution) Gold 688,862 T-bills 839,859 S&P500 650,629 5% annual increase (584k total contribution) Gold 1,375,478 T-bills 1,357,976 S&P500 1,005,364 2x every 5th year (2,050k total contribution) Gold 4,333,374 T-bills 3,331,296 S&P500 2,347071 Conclusion: gold wins Recommendation: GetGobsofGold Suggestions: PreyonPilesofPlatinum, StoreStacksofSilver Cheers, TJ