Page 151 - February_2023

FINANCIAL PLANNING
The green bar turns out to be the best scenario. The investor never sold and made a handsome return. If you move down the line, the total amount begins to decrease. If you decided to move money out for a while and ended up missing the 20 best days,
you would have less than what you started with. If you sat out for the 40 best days, your initial investment of $1,000 turned into $395. As you can see, missing the best
several days can have a huge effect. This illustrates the risk of cashing out. Missing just 10 days out of the 4,600 days (in a 40-year period) is actually very likely to happen if you pull your line out of the water at any given time.
As nice as it would be to time the market perfectly, it’s impossible. Same goes for buying a home. The best thing we can do is to look
at long-term trends and trust that history will
repeat itself. I would highly encourage you
to take a step back and analyze the situation before you make any emotional decisions. The reason behind this is because when the recovery comes, and it always has, you won’t be back in the market. Recoveries happen very quickly and usually when you’re least expecting it. If you have a plan and let the market cycle run its course, I believe you will reap its benefits in the long-term.
If you have a plan and let the market cycle run its course, I believe you will reap its benefits in the long-term.
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