Is Investing Still Worth It?

July 27, 2022

Is investing still worth it? We discuss this question to provide perspective for your financial health.

Full Transcript:

Hello, welcome to Arista Advice! Question of the week is: "Paul, is investing still worth it?" The answer is yes! Yes, yes, yes.

Right now, the market has taken a breather. It's been on a 13 year run of growth and expansion, and it's taking a breather. How far down will it go? We don't know. Could it go deeper? It could. Could it turn around and go back up? It could. We don't forecast, and we don't estimate. We just know historically that the market always provides a sufficient rate of return for those that stay invested.

Let me share with you a wonderful chart that we've been sharing with many great clients. If you go back to 1982, so the last 40 years, and you invested $500 a month, that $500 a month at an expected rate of return of just north of 10% has yielded a three million four hundred and ninety four thousand dollar value.
What did you have to go through to turn roughly about $400,000 into 3.4 million? Well, you had to go through and be disciplined enough to not react, but experience, six recessions, five bear markets, 41 Federal Reserve rate hikes, the Dot-com bubble, the Black Monday, October of 1987, two 50% corrections, 12 U.S. involved wars, one global pandemic, one impeached president, and one great financial crisis in 2007 and 2008. The market and Mr. Market always rewards the long-term investors. Don't react, as a long-term investor, to a short-term event. It can be catastrophic to your wallet and to your financial future.

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