What about another downturn in the market like 2000 – 2009 where the S&P was at a -1%, are you ready for that?
Did you have monies invested during that decade? How did you do? Not to well I bet, you probably lost about 40%+ of your retirement funds especially if you had it in a 401k. Click Here to see what that decade looked like. But what can you do about the ups and downs of the market, after all you want to earn and be happy, not lose and worry . . . an answer is Indexing.
So how do funds grow with Indexing? Click Here and analyze the next page, be sure to read the entire paragraph above the graph, you have the same amount of money invested for the same period of time but Indexing had a higher rate of return than the S&P. Notice in 2000 – 2002 and again in 2007 – 2008, while the market dropped the Index remained level – that’s the beauty of Indexing, your gain when the market goes up but you don’t lose when the market drops.
Now, lets talk about tax-free returns