re: Investing Advice for a Noob

I took the first one and ran it through Vanguard.

Do you see an issue with their result?

LINK

According to them, that fund's cost is killer. To the tune of 30 to 50,000 dollars.

quote:

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The assumed returns used in the hypothetical example are derived from indexes that we deem to be a fair representation of the different asset classes. For stock funds, the annual return assumption is 9.90%. We used the Standard & Poor’s 90 from 1926 – 3/3/1957, the Standard & Poor’s 500 Index from 3/4/1957 through 1974, the Wilshire 5000 Index from 1975 through April 22, 2005 and the MSCI US Broad Market Index through 2011

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Here is the explanation of what they used to calculate. They do change the underlying comparison since they are trying to compare to "the market." Don't know what problems that may create.

ETA: I ran the rest. They all lost by 30 to 50,000 dollars. Of course, that is according to Vanguard, who is trying to sell you funds.