Want Daily SOF News Articles and Job Listings Delivered to Your Inbox?
Why High Stock Prices Are Bad For Future Retirees | Forbes

Why High Stock Prices Are Bad For Future Retirees | Forbes

For the past century, stocks have offered a return of 7.2% every year, the same amount as the average earnings yield today. An analysis of average business earnings and cash distributions show that people who invest in stocks are earning less profit yearly. Relying on stocks alone to save up for retirement will only allow for a compounded 2.5% of returns every year. For millennials, low yields mean they will likely be working much longer than their parents.

Source: https://www.forbes.com/sites/baldwin/2019/08/27/why-high-stock-prices-are-bad-for-future-retirees/?ss=personalfinance#17d046942666

%d bloggers like this: