The Great Investment Lie

There is a big lie that investment advisors will tell you: that volatility can be defeated.

This falsehood can lead you to pay extraordinary fees for complex products that don’t work and that you don’t need in the first place.

Because you have developed a financial plan that includes investing only for the long run, meaning you won’t be using those funds bouncing around in the markets for many years into the future, temporary declines have no power to harm you.

And if you’ve constructed a well-diversified, broadly invested portfolio that is rebalanced regularly, all declines are temporary.

The hard truth is that, while stock market returns outpace inflation over time, they must be earned. 

• Earned by investing only long-term money. 
• Earned by having the will to stay invested, or even ramp up your investment pace when the markets crash and everyone says the world is ending.

Your knowledge that this is the way it works is the groundwork for your superior temperament during these times.

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