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graph net worth - CD return vs S&P index return

my son and I were discussing the current mess... and he wanted to just stay with a CD or some such fixed income vs investing in the market - a sector, index, whatever

Is there any kind of graph over some time - say last 10 years - using the usual $10,000 - that would show the value of a CD (returns invested) money market, bond index, etc vs the value of investing in an index or whatever...

Since most graphs just show the increase in security price, it doesn't show the value equation... especially for $1 money market funds.

SO - how to compare - graphically - a fixed income vs an index fund ?

Reply to
ps56k
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Ibbotson publishes an annual book called "Stocks, Bonds, Bills, Inflation" (SBBI Yearbook) and a bunch of charts with similar data. It's pretty expensive to buy but some libraries have it, and the information gets republished lots of other places - some samples are on the Ibbotson web site. I don't know if you'll find anything that covers CDs specifically but short-term CDs and T-bills are similar in yield.

There are some software packages that can spit out historical returns for a variety of asset classes, but I don't know of any that are publicly available for free.

-Tad

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Reply to
TB

Morningstar.com has total performance graphs for funds. As far as I can tell you can't actually plot two funds on the same graph, but you can certainly put them side by side (with two browsers open). The graphs all have the same starting value ($10,000) so it'll probably get you what you want for a 10 year period. You might try DFINX against VFINX for example. CDs will be more difficult, but that will get you money markets and indexes.

-Will

william dot trice at ngc dot com

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

Reply to
Will Trice

You could do this in excel

plug in returns from a CD plug in returns of VFINIX plug in returns of a MMMF plug in returns of a bond fund

Not as smooth as using morningstar, but depending upon age of your son, learning how to track things in excel and create the graphs needed might be a good lesson too.

-------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup.

Reply to
jIM

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