What Goes Up...
On June 18th of 2019 the market shot straight up at the open and stayed there. Exciting! Most folks who are in the stock market in some fashion love it when things go up!
But what happens when it turns?
An Example we use to demonstrate the effect of what happens when things go "backwards"...
If you have $100,000 in the market, and it loses 50%, how much do you have left?
Now at that point, if the market goes back up 50%, NOW what do you have?
Did you get it right? You're back where you started at $100,000!
Right?
WRONG!
You're actually at $75,000.
One of our partners recently brought us this diagram to demonstrate the real pitfalls of how important it is to keep your compounding working.
(Photo Credit: American Equity - The Power of Protection in Retirement Income)
Because losing dollars, does not make cents. (yes, that just happened)
Let me know if your retirement account has you worried at night. Not enough? Too much volatility? Trying to figure out if it will last and for how long? Probably worth finding out.
-JMJ