“It’s tough to make predictions, especially about the future.” – Yogi Berra
What is normal when it comes to investing?
The last number of months have been up for the equity markets. We can often forget what it is like to see account values go down. This is a little refresher on history…
Look at the chart below:
Annual returns and intra-year declines
This is the calendar year returns for the S&P 500 from 1980 to 2021. The gray bars are what the full year return ended. The red dots are what the intra-year decline was. For example, in 2020 the market ended up 16% but at one point, it was down 34%.
The average return from 1980-2021 was 9.4% and the average drop intra- year was -14%. (Source: FactSet, Standard and Poor’s, J.P. Morgan Asset Management)
Point is drops are normal. Your overall financial plan should have drops built in. This does not mean that your investments never go down. It means that your plan can still be on track even if your investments go down.
Remember-Think. Long. Term.
Our retirement planning process considers the ups and downs. It must because when you get retired, you want to stay retired, right?
Let me know if you have any questions.
Feel free to email me at [email protected] or click here to setup a phone appointment.
News from around the office, Riverbend welcomes Paul Saunders to the team. Paul is going to be one of the financial advisors for Riverbend. He seeks to get his Certified Financial Planner designation. He is an accomplished writer and has written a book on financial planning called, Force Field Finance.
On the lighter side, Elliott started Myrtle Beach High School tennis season this week. Go Seahawks!!
Hope all is well with you and your family,
Jeremy
P.S. You can register for upcoming webinars by clicking here and scrolling to the bottom of the page. Hit “register for our next free webinar”.
Finger Financial Five – 5 points in 5 minutes or less – is to provide you with a weekly shot of useful financial information. My intention is to share principles, so you will have more clarity and peace and make better financial decisions.
Investment advice offered through Stratos Wealth Advisors, LLC, a registered investment advisor; DBA Riverbend Wealth Management.
This content is developed from sources believed to be providing accurate information and provided by Riverbend Wealth Management. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Stratos Wealth Partners and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
