BJohnson
Well-Known Member
- Deleted by N/A
"The stock market is risky, but over the long haul, it will likely provide you a good return. "
I was just looking at some general data for the stock market as we are changing our 401K provider at my workplace. The average annual total return for the stock market (I am assuming S&P 500) for the 25 year period from 1988 to 2012 was 9.61% (annually). I suspect anyone would have a hard time being disappointed in an investment class that produced that 25 year period growth record. Couple that with the "100% growth factor" of an employer match and I would urge anyone with a 401K available to them to enroll and participate. The volatility takes some getting used to but it does over long periods of time produce some of the best investment growth of any asset class.
High-quality tillable ground in Iowa has had an incredible run also in the past 15+ years. My father passed in 1995 and his estate valued his land holdings at $2,250/acre. We sold the farm in Sept. 2012 at $11,250/acre - that's about 10% over 17 years. I suspect that ground be go for more like $9,500 - $10,000 today but that would still be an approx. 9% annual growth since 1995. I have my doubts about ag-tillable ground continuing to increase at the levels seen since 2005, time will tell.
Historical rec ground prices are something I don't have much personal experience with but I suspect some of land owned by IW members was bought at very low prices 10+ years ago. Kudos to anyone that saw that coming or was fortunate enough to time the surge in popularity of this sport.
I was just looking at some general data for the stock market as we are changing our 401K provider at my workplace. The average annual total return for the stock market (I am assuming S&P 500) for the 25 year period from 1988 to 2012 was 9.61% (annually). I suspect anyone would have a hard time being disappointed in an investment class that produced that 25 year period growth record. Couple that with the "100% growth factor" of an employer match and I would urge anyone with a 401K available to them to enroll and participate. The volatility takes some getting used to but it does over long periods of time produce some of the best investment growth of any asset class.
High-quality tillable ground in Iowa has had an incredible run also in the past 15+ years. My father passed in 1995 and his estate valued his land holdings at $2,250/acre. We sold the farm in Sept. 2012 at $11,250/acre - that's about 10% over 17 years. I suspect that ground be go for more like $9,500 - $10,000 today but that would still be an approx. 9% annual growth since 1995. I have my doubts about ag-tillable ground continuing to increase at the levels seen since 2005, time will tell.
Historical rec ground prices are something I don't have much personal experience with but I suspect some of land owned by IW members was bought at very low prices 10+ years ago. Kudos to anyone that saw that coming or was fortunate enough to time the surge in popularity of this sport.