Personal Investments • Re: Vanguard Total Bond Market

If you go 20 years from 2004 to 2024, if you just purchased the initial amount with no further investment

• Stocks would have returned 10.20% with an inflation adjusted return of 7.39%
• Bonds would have returned 3.08% with an inflation adjusted return of 0.44%
• Cash would have returned 1.54% with an inflation adjusted return of -1.05%

Your return seems to be different, but this may be due to you making multiple investment over the years and probably a bit of rebalancing. However, you would not do worse than cash. People who believe cash is great don't remember that a few years back cash interest was near zero and was pretty terrible for a long time. Replacing your bond with cash isn't going to improve your returns.

Statistics: Posted by gavinsiu — Sat Sep 07, 2024 11:49 pm

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