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252 Don’t Make Me Say I Told You So
Stocks, Bonds, Bills and Inflation 2000-2019
$10
Compound annual return
Small stocks 9.3% $5.93
Government bonds 7.1
Large Stocks 6.1
2.1
Treasury bills 1.6
$3.96
$2.98
$1.53
$1.38
$1
0.60
2000 2005 2010 2015
Source: Morningstar, 2020
3. Stick with your investment plan. Especially when you
are retired, it’s hard to keep your emotions in check when
monitoring investments. Once you make a plan, stick with it.
When investing, periods of uncertainty are the rule, not the
exception. Despite that uncertainty, it is important to bear
in mind that the long-term progress of the stock market has
been upward. Even top-performing investment managers will
go through periods where they underperform. If you keep this
in mind, you will probably be less likely to react emotionally
to portfolio declines by making unnecessary modifications to
your long-term investment strategy.
Chapter 6: Your Action Plan
