Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

A Message for Young Investors

 

A Message for Young Investors

Courtesy of 

This past week, I talked about what investors of different age groups ought to be thinkingin light of the recent correction. Depending on where you are in life, your reaction to stock market drawdowns should differ if you’re in the right mindset.

In this morning’s Los Angeles Times I got a chance to stretch this concept out for a Q&A with reporter James Peltz…

How should investors view what’s happened lately?

If somebody is investing because they want to use the money a year from now, they’re making a mistake because in any given year you’re going to have 10% drawdowns. But if you have a 10-year time horizon, you have an 88% likelihood that the stock market is higher when those 10 years are up. That’s starting in any month of any year going back to 1926.

If you have a 20-year time horizon, it’s 100%. There are zero 20-year periods where the stock market is down from the month and year you started. If you understand that and then you’re talking to somebody who’s 35, you ask them, are you using this money in the next 10 years or 20 years?

When it comes to a 401(k), someone who’s 30 is not using the money for 35 years. Historically there is a 0% probability that their portfolio will be worth less. And it’s even better than that. The way in which they invest, if you’re young, is periodically adding to the portfolio.

You can read it below, hope it’s helpful!

If you’re under 40 you should be hoping for another stock plunge, says pundit Josh Brown (Los Angeles Times)


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!