The Weekly Update 7/5/2024  Written by Brittany Jarocki CFP, (Jim's business partner, daughter and the succession plan Jim hopes he never needs). 

Would you go to Vegas if you knew you had a 90+% probability of winning over time?

I certainly would, and I would likely put a lot more cash down on the tables!

I don’t necessarily want to compare long-term investing to gambling at the tables in Vegas, but it does raise an intriguing thought process when we look at investment returns over time on the graphic above.

Five Year Money, as you have heard us state repeatedly here at The Wealth Strategies Group, has an 82.9% chance of being higher at the end of the five years than it was at the beginning.

And staying invested for the full ten years gives you a 93.4% probability of being “in the money” when the holding period concludes.

The longer the investment time frame, the higher the probability of positive returns on your money.

No doubt there will be volatility along the way, and potentially prolonged periods of negative returns. Historically, this has just been bumps in the road on the journey to long-term gains.

I’m interested in your thoughts, comments, and observations.  Feel welcome to call, email, or stop by the office and say Hi.

Respectfully,

James O. Lunney, CFP®

CERTIFIED FINANCIAL PLANNER™ Professional  

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested in directly. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. Stock investing includes risks, including fluctuating prices and loss of principal.

Asset allocation does not ensure a profit or protect against a loss.  Value investments can perform differently from the market as a whole.  They can remain undervalued by the market for long periods of time.