And you're probably aware of the "accident" in 2008, when anyone with anything in stocks, individual stock investment funds, lost half of their money.
But a year and a half later, the stock market recovered. Those who had invested in mutual funds saw good returns to its original value. If they had continued to invest during the recession, which would have ended even more. Why? When the stock is down, you can buy more
shares at a lower price. Then, when the market recovers, you are holding all these additional actions that suddenly soar in value.
The history of the bag confirms that, in general, investment in mutual funds will help build a larger nest egg for a long period of time. The trick is to invest in shares of mutual funds that are at least ten years old and have an average of between ten and twelve percent annual gain.
I think it would be hard to find? Here are some funds available to T. Rowe Price, an investment firm age and in good standing.
* Performance of Mid-Cap Value fund has a national average of 10.54%
from 1996.
* The real domestic asset fund averaged 11.03% since 1997.
* The Cap Value fund has a small internal average of 10.90% since 1988.
* The Latin America fund has averaged - Get Ready - 18.43% since 1993.
And you can easily find many more funds than the average of a statement of eight or nine percent. You can even find bond funds - which tend to be less volatile than stock funds - which will result in a return of six per cent.
Of course, it is crucial not to begin withdrawing their retirement funds in a down economy. But if you do your homework and be patient, investing in stock mutual funds will probably give you a comfortable retirement.
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