You may have been told to invest in the #stockmarket 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.
VIP Financial
www.vipfinancials.com
402.547.0395
Financial Advisor Parker CO
Investment Planning