I'm signed up with Financial Partners for their email updates, although I don't know how much stock I put in their viewpoint today's email was interesting.

The part that really hit home was the amount of time a needed to recoup losses after the ups and downs of the market recently:

"A 50% capital loss requires a 100% gain to recover monies. In order to make 100% returns an investor targeting 7% p.a. needs more than 10 continuous years of 7% p.a. returns. Or over 16 years at 4.5% p.a."
If your retirement fund is in stocks that means a minimum of 10 years to make back your nest egg. Not a pretty thought. Certainly makes hard assets with less volatility very appealing.

To read the entire report (it's long) click here

 
This post has been included in Alberta Real Estate News Edmonton Region, AB Real Estate News
Post is included in group: Investors

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Todd & Danielle Millar

Edmonton, AB

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