- “Probably the biggest shift I am seeing is that clients are solely concerned about their downside. And they are all too willing to give up potential upside just to be sure their downside is protected.”
- Even with today’s sub-3% inflation, you can’t hope to keep up if your money is earning half a percentage point at the bank. When your portfolio lags inflation, your purchasing power is gradually chipped away.
- Over the past 50 years inflation has averaged 4.1%; during that time, large-cap stocks returned an annualized 9.8%.
- “As hard as it may be to stick with stocks, given what has happened history has proved that they have a great record of delivering inflation-beating gains.”
Learn more about common money mistakes and how you can fix them in this article:
Fix your money mistakes: Not enough risk – May. 19, 2011http://money.cnn.com/2011/05/19/retirement/mistakes-too-cautious.moneymag/index.htm(Money Magazine) — With every financial decision, you have to balance two competing urges: the desire to not be poor and the desire to be rich. Lately the former has been trouncing the latter.