A trend we have noticed among baby boomers that we have recently coached up about global market returns is a lot of people exhibit concern and worried body language. When we discuss retirement planning and income needs, not only is there a high percentage of fear, but some of the people that I’m talking to don’t believe that the market really is a viable option to grow their money in retirement. This concerns me deeply, when we look at the data the market has a two thirds bias and two out of every three years is up while one out of every three years is down. When you go back to 1923 and look at the data that’s been compiled in all of the different market indexes around the world, it is incredible what the market has returned. There is nothing else that ONE can invest in that remotely can be held up against the market. The market is the best wealth producing entity man has ever created without question. That’s not opinion, that’s absolute fact.
What’s the real issue then, unfortunately many American investors are not getting market returns? The returns are there… but based on the active nature of many fund managers believing they can beat the market, coupled with stock picking, market timing, and track record investing techniques, causes transactions which erodes returns with their costs. This is prudent investing….I think NOT, trying to beat the market? According to Dalbar, few investors are getting market returns. The reality is quit trying to beat the market and apply the science of investing that is taught in most colleges and universities today, as well, proven by 50 years of research and study. The secret, get market returns!
Own equities, diversify, rebalance, and realize, investing in the market is a lifelong event and long term. Knowledge is power! Ignorance, doubt, and fear can be trumped by education. Should you know? Get coached up!