1.Go to Vanguard.com

2.Click on the "Filter" Box on the right side of the screen. A pop up box will appear.

3.Scroll down the box until you see a color coded risk chart with 5 colors.

4.Select only the safer buttons (Green and Blue). Pick a fund's 10 year return average and invest a single investment of $10,000 for a period of 30 years based off that fund's 10 year return average.

5.Go back to the "Risk" screener and select only the riskier options (Light orange to orange). Pick a fund with a 10 year return and calculate the balance after 30 years.

(Hint, find a "Safer" fund with a lower return and a "riskier" fund with a higher return. The reality is that riskier funds tend to have higher returns when investing for a long period of time).

What is the implication for saving for retirement?

Conversely, if you had invested $10,000 in NASDAQ (U.S. Stock index) back on March 10, 2000, how much money would you have today (the NASDAQ last peaked around 5,000 back around then. It took a dive thereafter)? As a back story, google "Dot Com Bubble" and see how the NASDAQ had gone up dramatically from 1995 (when it was at 1,000 and peaked at 5,000 just 5 years later.

Keep in mind that the stock market has returned on average about 10% per year. (Though every year can be different - we're talking about averages here).

1.Go to Yahoo Finance to see NASDAQ Historical Data

2.Set dates from March 1, 2000 - April 1, 2000 and click the apply button. Select the index close price from March 10, 2000.

3.Look up the current price of NASDAQ.

Using the March 10, 2000 and today's price, calculate your annualized return (round to the nearest year).It would look like this if you don't have a financial calculator ((End Value/Beginning Value)^(1/Number of years)) - 1 = Annualized return. Use your Xy key on your calculator.

On your financial calculator: Use the March 10, 2000 date as PV (enter as a negative number) and the current price as FV. There is no PMT. N = Number of years. P/Y = 1. Calculate I/Y to get your annual return.