i bought retirement 2040 from troweprice about a year ago and it hasn't been getting close to 8% interest at all. It's actually been going down. arent i suppoed to expect 8-10% interest? SP500- doesnt that average 10% interest.. or is that only in the very long run?
2007-10-01 14:14:39 · 2 answers · asked by dabo 1 in Business & Finance ➔ Investing
The stock market and the SP 500 increases are NOT interest .
Interest comes from bonds and CDs .
The market may or may NOT have Gains ( not interest ) .
Clearly some one did NOT explain the various investment options and how they work .
You need to start studying NOW if you are investing $$$$$$ ,
Because thinking that you will be getting % from a stock fund is soooooo wrong .
Go to your boker or sales person and have them explain how the market works .
If you want interest , invest in bonds or CDs .
And FYI - your 2040 TRRDX is a stock fund .
It is up from 18 to 20 since last year which is 11% although there was a huge drop during the summer .
Since when is 11% Not close to 8% ?
( and that is GROWTH Not Interest )
http://finance.yahoo.com/q/bc?s=TRRDX&t=1y
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2007-10-01 14:30:56 · answer #1 · answered by kate 7 · 2⤊ 0⤋
Who sold you this product? If you don't know that this could go down as well as up and was a long term investment then you either didn't listen or were mis-sold.
2007-10-01 21:27:58 · answer #2 · answered by Anonymous · 0⤊ 0⤋