THE NEW HOLISTIC RETIREMENT • 23 I’m concerned many savers don’t understand what volatilit y can do to their l ong- term savings. Take, for example, our chart above. From January 2000 to December 2019, the S& P 500 ® return ed an averag e of 6. 06 per cent a year . If we instead calculated that number from January 2000 to March 2020 (adding just three months to the chart), the S& P 500 ® return ed an averag e of 4. 42 percent a year. That’ s a dro p of near ly 1.7 percent a year across the twenty- year average. All because of a few crazy weeks of market volatility. $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 $220,000 $240,000 $260,000 $280,000 $300,000 $320,000 $340,000 $360,000 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 Source: Y ahoo Financ e GSP C Historical Prices 2020 Shown for illustrative purposes only. Past performance is not indicative of future results. markItebt egcos nthtienquueestthiiosn:tWurhbeurleendcoew? eMgoanfryom here? Does the experts— myself included—believe th e ans wer i s “y es.” -9.10% -11.89% -22.10% 28.68% 10.88%4.91% 15.79% 5.49% -37.00% 26.46% 15.06% 2.11% 16.00% 32.39% 13.69% 1.38% 11.96% 21.83% 4.86% 31.46% -26.15% $40,000 $60,000 $80,000 S&P 500 ® Total Return: 2000 - March 2020 Average Annual Return 4.42%
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