Of course when you add 10k per month in 20 years you will have a nice account no matter what you invest in.
come on 10k per month. Who puts 10k a month away....the national savings average is in the negative and you think that an avg investor can save 10k a month.. Beside that why play with DIA when you can just throw into DDM and double it. Forget DIA buy DDM.
With such a large investment and large monthly contributions 10MM isn't such a big return for a 20 year period. Imagine the value of that 10MM in 20 years... probably somewhere on the order of 1MM in todays dollars. Whats the internal rate of return... what about taxes when you withdraw? I'm not impressed by this strategy... -Neo
this isn't a trading strategy, it's an example of how compounding a market index will thoroughly trash most managed funds. inflation adjusted, 10 million in 1987 is not worth 1 million in 2007.
With your hearty recommendation I did even better and loaded up on DDM at the close and am now up 1.2% in just 2 hours! Compounded and annualized, that is something like 10,000,000% a year!! We're well on our way, baby!!!