Wall Street Math Doesn’t Add Up
How familiar are you with Wall Street Math? The stock market lost -50 percent during the 2000-2002 Technology Bubble and lost -50 percent again during the 2007-2009 Financial Crisis, crushing American portfolios and dreams.
In 2008, the US economy lost an estimated 22 Trillion dollars! You lost so much because you didn’t know how much risk you were taking and don’t understand Wall Street Math.
Most people think they can take risks because if they make 50 percent and then lose 50 percent, they’re back to even. But it isn’t true.
Let’s say you have a 1 million dollar portfolio and make a huge gain of 50 percent, up to 1 million five hundred thousand dollars. Then you lose 50 percent. Are you back down to your original one million dollars with no harm to you? No!
Your new 1 million five hundred thousand dollars lost -50 percent, which is a 750,000 dollar loss, bringing your portfolio to 750,000. Dollars. So, a 50 percent gain followed by a 50 percent loss, creates a 25 percent loss to your savings. Your original 1 million dollars is now only worth 750,000 dollars… a loss of 250,000 dollars. This is Wall Street Math.
You may also be interested in this recent video from our Whiteboard Series.
If you want to learn how to protect your savings against large losses, call us today.
916-791-7063
You might also like to learn more about our book Momma’s Secret Recipe for Retirement Success
DISCLOSURE – All presentation data is provided and intended to be used for general educational purposes only and is not intended as a solicitation for you to buy or sell any financial product. None of the material in this presentation is intended to give you, nor are the presenters engaged in giving you, specific tax, investment, real estate, legal, estate, retirement, or financial advice, but rather to serve as an educational platform to deliver information; nor is it intended to show you how the strategies presented can specifically apply to your own tax, investment, estate, financial, or retirement position, but rather to offer an idea of how these principles generally may apply. Stocks, bonds, or mutual funds have risks and can lose principal, even with a stop loss, and there is no guarantees of gains, as past performance is not indicative of future positive investment results. The sale or liquidation of any stock, bond, IRA, certificate of deposit, mutual fund, annuity, or other asset to fund a new portfolio and/or annuity may have tax consequences, early withdrawal penalties, or other costs and penalties as a result of the sale or liquidation. You can’t invest directly into a stock market index. A fixed index annuity with an income rider can protect your savings from losses and provide you guaranteed lifetime income, but you could incur surrender charges, gains aren’t guaranteed, you’ll pay a fee, and guarantees are backed by the financial strength claims paying ability of the issuing annuity company. Illustrations/projections displayed within this presentation are hypothetical in nature and should not serve as the sole determining factor in making financial decisions. Consult with a qualified investment, tax, legal, and/or retirement advisor before making any decisions. By contacting Peak Financial Freedom Group, you may be offered additional information regarding the purchase of financial products. Seminars, radio shows, TV productions, book releases, magazine and book promotions are sponsored, promoted and paid for by Peak Financial Freedom Group, LLC. If you place assets under management with our firm, we are paid an advisory fee, and if you purchase an annuity from our firm, we are paid commissions from an insurance company.
Investment Advisor Representatives of and Advisory Services offered through Fiduciary Solutions, LLC, a Registered Investment Advisor. Peak Financial Freedom Group LLC is primarily a fixed insurance sales organization and provides no Advisory Services. PFFG Insurance Agency LLC, CA License #0N14013, is a licensed insurance agency and provides no Advisory Services. Peak Financial Freedom Group LLC, PFFG Insurance Agency LLC, and Fiduciary Solutions LLC are separate affiliated entities. Insurance products and services provided by PFFG Insurance Agency LLC and independent agents. Jim Files CA Insurance License #0F06511 Dan Ahmad CA Insurance License #0732913
Peak Financial Freedom Group ∙ (916) 791-7063 ∙ www.peakfin.com 2520 Douglas Boulevard, Suite 110, Roseville, CA 95661
