Summary of CUIDADO CON JUGAR CON TU PENSIÓN INDEXADA - #IF

00:00:00 - 00:10:00

This video discusses the potential risks and rewards of investing in indexed mutual funds. It argues that while these funds can provide a good return on investment, they can also be risky, particularly if the investor's retirement years coincide with a market downturn.

• 00:00:00 In this video, we explore the prospects of index investors in the S&P 500 over the course of 16 years, beginning in 2006. We use results from the vanguard 500 stock index fan investor in euros, which covers the years 1999-2005, and adjust for inflation. Our scenario is even more realistic than what an individual Spanish investor could achieve, as we take into account the effects of inflation on our investment. Even after adjusting for inflation, our scenario results in a return on investment (ROI) of 100.93% over the 23-year period. You can see the table and charts in the video, which show the annual return, inflation-adjusted return, and total return for the vanguard 500 stock index fan investor in euros, as well as the percentage of return achieved by each year. Finally, we calculate the annualized return for the individual investor over the 23 years, assuming they invested the same amount each year and started with a retirement savings of 1,200 euros. This individual would eventually have a net worth of 27,600 euros, or 420 euros per month.
• 00:05:00 The video explains how an investor can achieve a better return on their investment by following a indexed retirement plan. The first three cases illustrate the different outcomes an investor can expect with a indexed retirement plan, although the last case shows that even with a longer time horizon, there can still be negative returns. The final message is that it is important to be realistic about how long it will take for the market to match the retirement savings of an indexed retiree.
• 00:10:00 In this video, the author advises caution when investing in indexed mutual funds, as the retirement years coincide with the worst time to say. However, this is just one story and we will see what happens in the next video. If you want to learn more about indexed investing, you can purchase our book, "The Asymmetrical War on Financial Independence", on Amazon. Once you have registered for our free trial, you can find out which historical results this type of investment has had. You can also find the link in the video description. If you would like the book free, you just need to open a My Investor account and sign up for any of its products. Remember to do this through the link we provide in the video description. Once you have done this, please let us know and we will send it to you.