62 • MARTIN H. RUBY
the long run. During the Great Depression, everyone else was los- ing their wealth when the market dropped. But you, with your in- dexed account, just got zero percent interest that year. No big deal. The next year, you started growing again from a positive position. This is why I love the concept of indexing. But what do others say? The Money Manager I have a client named Will who is one of the smartest financial guys I know. Before he retired, he managed billions of dollars in institutional pension funds. Essentially, it was his job to grow enough money for a company to pay everyone their pensions. Indexing piqued his interest. But, of course, he wanted to run his own analysis. So, he back-tested indexing in numerous historical periods. How would it perform when the market was down, up or on a roller coaster ride? What about in times of slow growth? Fast growth? When we sat down one January afternoon, he set a ream of pa- per on the table, heavy enough to make a thud. This was his anal- ysis. I asked him what he had determined, and here’s what he told me: “Marty, the return pattern in this product is so unique, it’s un- like anything else in my portfolio. I think everyone should own an asset like this.” Translation into non-money-manager speak? The balance of protection and growth is unlike anything else. Everyone needs to take advantage. Pretty high praise from a guy who was used to working with the stock market. Now you see why.
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