The Stock Market Hasn’t Always Earned 8%, 10%, or 12%
You may have been told to invest in the stock market because you’ll possibly earn 8, 10 and even 12 percent per year. And if you got these returns, everything would turn up roses. But what if you don’t?
The S&P 500 Index, that includes the largest 500 US companies, started at 1,469 in January 2000 and ended at 2,506 in Dec 2018.
That’s a 2.85 percent annual compounded increase, before fees, over 19 years!. How did this happen?
The stock market lost 50 percent between 2000-2002, recovered, then lost 50 percent again, from 2007-2009.
From 2000-2013, the S&P 500 Index increased by 0 percent starting in Jan 2000 at 1,469 and ending in Jan 2013 at 1,469. 0 percent increase over 13 years!
Your account probably increased because you kept adding money… you kept saving; not because you earned high rates of return.
From 1999 through 2013, 15 years, the S&P 500 Index increased by 2.75 percent per year, before fees. For all 15-year time periods between 1996 through 2018, the S&P 500 Index averaged a 4.17 percent annual increase before fees.
If you’d like to learn how to protect your assets from large losses and have the opportunity to earn a reasonable rate of return, contact us today.
Peak Financial Freedom Group
916-791-7063
You might also like to learn more about our book Momma’s Secret Recipe for Retirement Success
