Market timing is tempting – get out before it tanks – get back in before it rebounds. But what if you don’t time it right? What if you missed the best 10 trading days out of the last 20 years?
$100,000 invested in an S&P 500 index fund in 2000 would have grown to $324,210 today.
Over those 20 years, there were about 5,000 trading days.
Cue jeopardy music …
Got your answer?
As Ripley would say – Believe It or Not – if you missed just the best 10 out of 5,000 days, your return is cut in HALF!
That’s $161,000 out the window because you were trying to time the market.
Even when there’s elections.
Even when there’s a global pandemic.
Even when there’s recessions (ESPECIALLY when there’s recessions).
Go to cash. (Until you get closer to retirement anyways.)
6 of the 10 best days followed within 2 week of the 10 worst days!
And that’s further insight into why individual investors get half of the S&P 500 returns. The market tanks. We freak out and sell. Then the market has its best day ever and we missed it because we were sitting on the sidelines.
Are you willing to bet half your return on getting the timing right?
Our investment process is designed around creating a strategy that you’ll be able to stick to through thick and thin. It’s customized to fit within your comfort level.
And when the stuff hits the fan (as it does from time to time), we’ll be the calming voice reassuring you that we planned for even global pandemics and presidential elections.
If you don’t have an investment strategy you’ll stick to no matter what, then schedule a Discovery Call with us.
It’s literally our job to help young families with this stuff.