Almost everyone can remember back to the year 2000. Even some of my oldest clients can do that.
MarketWatch this morning published a shocking article (at least to me). The article included a chart of the last 17.5 years of S&P 500 index investment returns.
I preach every day, to any client and prospect that will listen to me, about the importance of a company 401(k) stock and bond market risk management game plan.
Part of that sermon is the necessity of avoiding the catastrophic effects of the largest parts of historic S&P 500 index declines like the 49.1% losses in 2000-2002 and the 56.8% losses in 2007-2009.
Individual stock market investors never completely avoid stock market losses. But they can surely avoid the ones that change the complexion of a future retirement.
For heaven’s sake, don’t repeat the mistake of the former company 401(k) retirement plan participant described in the last paragraph of this article. Unfortunately, I remember some of my prospects who did retire right around March 2000. Their retirement was changed forever.
Ric Lager
Lager & Company, Inc.
