Did you know?

  

Strategy
• In 30 years, $100,000 will become $432,194 if invested at 5% but $1,006,266 if invested at 8%. That is 132% more. Your investment choices make a big difference!

• While the S&P 500 Index earned an average annual return of 8.4% during 1988-2008 ($1 would have become $5), the average individual investor earned an annual return of just 1.9% ($1 would have become $1.50)

• $10,000 invested in the S&P 500 Index in February 1989 would have become $29,382 in February 2009. If an investor had missed the best 30 days of daily return, it would have become $6,531 (77% less). If an investor had missed the best 10 days, it would have become $15,123 (48% less)

 

 

  

Past Market Performance
• From 1926 to 2008, large company stocks had a 9.6% annual return vs. 5.7% for government long bonds and 3.7% for Treasury bills

• Over any 10-year rolling period from 1969 to 2008, stocks had only a 1% probability of a negative absolute return (vs. 37% for gold or commodities)

• Housing price increases since 1890 have been close to 0% factoring in the effects of inflation. Housing prices adjusted for inflation were also flat between 1945 and 2000

Economy
• With 3% inflation, $1M in 30 years is equivalent to $412,000 today

• By 2017, social security costs may exceed revenues

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The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. We believe the information obtained from third-party sources to be reliable, but Bourbon Financial Management, LLC does not guarantee its accuracy or completeness. Examples provided are for illustrative purposes only and not intended to be reflective of results you should expect to attain. Past performance is no guarantee of future results.