there is nothing totally safe.
The Bogleheads can explain to you exactly how to make 5%-7% with relative security.
Even passbook savings inside my youth may have already been lost if a bank failed. FDIC insurance coverage were only available in 1934, however the insured limitation ended up being pretty low until 1980, whenever it rose from $20,000 to $100,000 (its now $250,000).
An account of two families: My wife and I had the right buddies into the early 1980s, so we had extremely similar incomes. Let us call them Bill and Jane Spender. My family and I had two automobiles, and every had cost about $1,000. We’d a homely house with a $30,000 home loan. The Spenders also had two automobiles which hadn’t cost much, and purchased a house, winding up with a $45,000 home loan. Then they traded in another of their automobiles and purchased a minivan. Its repayment had been over fifty percent just as much as their home loan. Therefore straight away, their financial obligation solution expenses had been 2.25 times up to ours. Maybe not very long after purchasing the van and making a few repayments, Jane reported to my spouse which they had been hardly making ends fulfill.