Behind every success story comes numerous setbacks, and this applies to investing as well.
Investing every month for 40 years to become a millionaire sounds simple. BUT, along the way, there were countless events that raised fear and uncertainty about the times ahead. Don’t let those news headlines throw you off, because market volatility is the norm, not the exception.
If you had panic sold during the depths of the 2008 financial crisis and then sat in cash until now, your account balance would only be about $475,000. You would have literally missed out on MILLIONS of dollars by not staying the course.
If you’ve been investing over the last 40 years, you have seen your portfolio drop by over 50%… twice. That is never any fun to experience, but in order to build wealth, it is very important to stay patient and power through those tough times.
Today, there are geopolitical conflicts, inflation concerns, and we may have a crazy election in front of us. It sounds scary but it is nothing new that we haven’t seen before. And we know that the stock market has bounced back 100% of the time.
Stick to your plan, keep investing early and often, and remember that those who stay the course are rewarded in the long run.
As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.
-Vivi & Shane
