I know people like
Warren Buffet have been telling you that the
market averages about 10%, and
if you stay in it for the “long-run”,
you will be rewarded. The devil is in
the details. Just exactly how long is the “long-run” anyway? The definition
of “long-run” according to Ibbotson, the company Wall Street turns to for
historical data on the S&P 500, is about 80 years. Whenever you see the
charts that reflect the 10% average return on the S&P 500, usually the
beginning date for the chart is either 1925 or 1926. Not exactly consistent
with the time horizon that a typical retiree might use to project income for
the remainder of their life. In fact, at 70 years of age, your remaining
life expectancy is 16 years. Not quite the 80 years the charts use to
illustrate the concept. If you don’t have 80 years, the S&P 500 doesn’t
always average 10%. In fact, on more than one occasion it would have taken
more than 10 years just to break even on your initial investment in the S&P
500! Not to mention the countless number of people who are still trying to
recover their losses from the 2000-2002 and 2008 stock market crash.
Did Your Broker or Advisor Call You?
Many of you were
never contacted by your broker or advisor to adjust your portfolio during
the 2000 to 2002 market downturn, and during the current market upheavals
which continue into today. If you had contact with your broker or
advisor, it was probably you who initiated the contact. Koehler Financial
Services, Inc. uses a “hands on” approach, we review your account daily and make
tactical profit taking adjustments as needed. We re-allocate yearly according to
our
proven disciplined investment formulas, and use asset preservation
strategies during turbulent times.
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