No doubt you have heard the above phrase repeated many times. You may also have heard that home value declines caused a great loss of accumulated wealth.
All that was true at the low point of the recession, but it’s not true any longer. Even inept investors like me have recovered, that is as long as they didn’t panic and lock in their losses.
Since 2009 the stock market has recovered and more and even housing prices have recovered in most areas. In other words, the average American’s wealth has and continues to grow … provided they have made and continue to make prudent financial decisions for which you do not have to be a financial genius.For my part being age 72 and retired six years, I am a conservative investor, perhaps a bit too conservative for my own good. Nevertheless, I compared my 401k balance on the day before I retired and as of yesterday. I found that even after taking the required minimum distributions, I have $1.173 for each dollar I had on January 1, 2010 and that is with over half the account in fixed income investments. I could have done a lot better with a bit more equity fund allocation.
There is a lesson here, don’t believe all the gloom and doom you hear about. Stay the course, make prudent financial and life decisions. Opportunity still exists.