I'm signed up with Financial Partners for their email updates, although I don't know how much stock I put in their viewpoint today's email was interesting.
The part that really hit home was the amount of time a needed to recoup losses after the ups and downs of the market recently:
"A 50% capital loss requires a 100% gain to recover monies. In order to make 100% returns an investor targeting 7% p.a. needs more than 10 continuous years of 7% p.a. returns. Or over 16 years at 4.5% p.a."
If your retirement fund is in stocks that means a minimum of 10 years to make back your nest egg. Not a pretty thought. Certainly makes hard assets with less volatility very appealing.
To read the entire report (it's long) click here
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