Page 52 - AAA Magazine – AAA Ohio Auto Club – May 2019

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relatively recent historic windows, the positives have mostly outweighed the negatives for investors. From 1973-2016, for example, the S&P gained an average of 11.69 percent per year. (The last 3-year losing streak the S&P had was 2000-02.)5
Your portfolio might not return as well as the S&P does in a given year, but when equities rally, your house- hold might see its invested assets grow noticeably. When you bring in equity investment account factors like compounding and tax deferral, the growth of those invested assets over decades might dwarf the growth that could result from mere checking or savings
account interest.
At some point, putting too little into investments and too much in the bank might become a risk – a risk to your retirement savings potential. At today’s interest rates, the money you are saving might end up growing
photo: iStock/Ridofranz
faster if it is invested in some vehicle offering potentially greater reward and comparatively greater degrees of risk to tolerate.
Having a big emergency fund is good. You can dip into that liquid pool of cash to address sudden financial issues that pose risks to your economic equilibrium in the present.
Having a big retirement fund is even better. When you have one of those, you might confidently address the most significant financial risk you will ever face: the risk of outliving your money in the future.
This material was prepared by MarketingPro Inc. and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note: investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA (www.finra.org) / SIPC (www.sipc.org). Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. The Strategic Wealth Management Group is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS does not provide tax or legal advice.
Citations:
1 - valuepenguin.com/average-savings-account-interest-rates [10/4/18] 2 - investing.com/economic-calendar/ [10/11/18]
3 - money.cnn.com/data/markets/sandp/ [10/11/18]
4 - ycharts.com/indicators/sandp_500_total_return_annual [10/11/18] 5 - thebalance.com/stock-market-returns-by-year-2388543 [6/23/18]
50 | AAA MAGAZINE
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Jeremy Swank may be reached at 419-522-6636 or JSwank@TheStrategicWealthGroup.com. www.TheStrategicWealthGroup.com