24 • RUBY, WILDING & SWANSBURG But, I’m not h ere t o sca re you wit h talk of t he next great cmraarskhe. tInmsteeaadn,sI’mforhetrhee to help you evaluate what a volatile equities-ex posed port ion of your retirement accounts, because this is an issue that’s goi ng to stick with us for many years to c ome. Why it Hurts So Much When the Market Crashes H c eel re eb’ rs aat ovreyr ymcooondc rwe ht ee ne xaa cmr pa sl eh eo df wmhayr ks ea tv es tras rmt s atyo nr oe tc obveeirn. a Following is a chart of t he growt h n eeded for recovery when the market drops: The Impact of Volatility
Growth needed for r ecovery Market Drop
That’s right. If the market drops 50 percent, your account nt heee dms at or kgerto wd r ob py p1e0d0 2p 2e r cpeenr ct et on tmi ank e2 0u0p2t haant dl ows se. nSto , uwp h 2e n8 per cent in 2003 , m any savers were sti ll under water: The y hadn’t earned b ack everything they had l ost .
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