this post was submitted on 30 Dec 2024
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plenty of people do, they just don't have 400 million to do it with
like my brother used the cheapo student loans here in sweden to just chuck a bunch of money into low-risk index funds (i think that's the term) and he's gotten 2000 bucks from that for basically 0 effort.
now imagine doing that with millions of dollars
All kinds of low risk things go down occasionally. Think of the 2008 financial crash for example. On average, or over a long time, you are very likely to make gains. But that’s not nevessarily true for shorter periods like 10 years even if you invest in low risk assets.
Edit: I also invested some of my student loans in Finland. Or officially, my other income that was freed up due to the loan ¯_(ツ)_/¯
For the last year or so getting a 5% (1-3 yr) CD was not unheard of, so literally leaving it in a bank account is better than the annuity option by the above poster's math.
I don't think you quite understand what I mean. You can't extrapolate from the last 3 years. What you can extrapolate from is longer periods of time, where we occasionally see assets going generally down for some time. So you have maybe 90% chance of your stock portfolio going up in the next 5 or 10 years, and 10% chance of it going down (rough numbers but the point holds).
So you can end up in a situation where you lose money, but it's unlikely. If you are very risk averse, you would prefer a 0% increase over these odds.