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Check out this stat!!! This is insane and it applies to your money!
- From 1991-2010, the average stock fund averaged 9.90% per year
- But the average investor in the average stock fund only made 3.80%!!! (source Davis Advisors)
So wait just a minute here. You must be thinking, how did the average investor only make 3.80% when the fund they bought made 9.90%? What’s the catch?
Ever hear the expression buy low and sell high? That’s just the opposite of what the average investor did!! They bought high and sold low. Jeez. Talk about timing!
The average investor chased performance and bought what did well in the past, thinking that whatever had done well in the past would continue to do well in the future. But when it didn’t and their investments went down, they sold. I wish someone would have told them: If ya can’t take the heat, get out of the kitchen.
$10,000 invested at 3.80% for 20 years = $21,083
$10,000 invested at 9.90% for 20 years = $66,062
There are your 45 Gs.
I don’t want you to leave $45,000 on the table.
You need to be patient (deep breaths.) You need to stay the course (more deep breaths.) Wait. Do you even have a course? Or are you willy nilly-ing it?
You need some sort of plan for how you are going to invest and what you are going to invest in. If you don’t have this plan, when the heat comes and the media tells you the sky is falling, you will bail from your investments and cash out.
3.80% might not get you where you need to go. Who knows? Maybe 9.90% could. Just sayin.
Speaking of courses, I have been working on something for months. Something that could make it easier for you to learn, understand, and implement some of this investment stuff. Stay tuned down the road.
Important Disclosures: These articles are provided for informational and educational purposes only, represents our views as of the date of the posting only, and may change without notice. Some of the information has been obtained from third parties and believed to be reliable, but is not guaranteed. We have not considered any investment objectives or financial situations of any investors and we are not responsible for consequences for any decisions made based on the information in the blogs. There is risk of loss from investing in securities, which varies depending on different types of investments. Forward looking statements are based on assumptions only and no reliance should be placed on such statements. We do not guarantee the accuracy or completeness of the information displayed.
The post Leaving $45,000 on the Table? appeared first on Today's Innovative Woman Magazine.
