THE NEW HOLISTIC RETIREMENT • 25 Let me put it another way. You have $10. You lose 50 pp ee rr cc ee nn tt . oNf oiwt . Ny oouwh ya ov ue $h7a. v5e0 . $Y5o. uY’ roeu sgt irlol w$ 2 t. 5h0a ts hmoor nt eo yf wb hy e5r 0e you started. The Impact of Volatility IUm. Sa. gmi naer kyeotuhhi satdo rt yo . sAa vme adr uk reitnsgo t bh ae dwyoorus t wdoe uc al dd, eo inn amv eo rdaegren, lose money every year. A market that saw not just one but two crashes that wiped out more than a third of your savings’ value. We feel for our parents and grandparents who lived thherroeu’ sg ha tshuartpkr ii sned: oTf hme iar r kg ee nt ewr iatthi otnh ei sGnr’ te at th eD eopnrleys soi no en . tBh ua tt hdaidd, ttooos.ave during one of the worst markets in history. You The years 2000 through 2009 are estimated to be the shienagrlde wi t ocrasltl edde ctahde e “ il no s St &dPe c5a0d0e ®o fh ii sntvoersyt.i nYgo”u bme ci ga hu ts eh at hv ee market that decade ended lower than it started. If you had a 401(k) with $100,000 in it, completely invested in the S&P 500 ® , ¹⁵ what would have happened o th v e e rp rt he ce efdi ri sntgdcehcaardt emoaf rtkhei sd ,c“eAnnt un ruya?l WT oetlal ,l lRoeotku ra nt tohf et hl ien eS &o Pn 500 ® .” This represents your account value. Then, the market crashes from 2000 to 2002. It takes you four years to earn ¹⁵ theIst'tsonckost pthoastsmiblaekteouipnvthesetSd&irPe5ct0ly0 in an index. However, one can invest in ® or purchase shares of a mutual fund that tracks the S&P 500 ® Index. How bad was it?
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