A reader left the following comment on the Seeking Alpha version of Understanding Time Horizon post; Investing real dollars with the goal of merely matching inflation would end up providing a miserable return. Two rough numbers: the rate of inflation over the last 40 years, a typical investment lifetime for that horizon: 3%. The rate of return of the S&P 500 over that same time period: 9%. Given the fact that you can purchase index funds that replicate that 9% return, why would an investor, matching his wits and experience with the 'average', settle for less? If my rate of return over that same time period had been ... (full story)