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3 Things 10-2-23

Thing One


Some Financial Trivia That's Not So Trivial


Did you know that 35% of prime working-age adults (those between age 30 and age 55) have zero retirement savings set aside and that among the 65% that have put something aside, the average net balance is $73,000 (the median balance is $35,000)?


And how about life insurance needs? Did you know nearly half of the people with life insurance only have coverage amounts of $100,000 or less and that 1 in 3 parents/families with children under 18 have no life insurance at all – even though they are the sole means of financial support for their children?


And speaking of those $100,000–or-less policies, those are the kind that you usually see in employer group plans. While they will likely cover the cost of a funeral, they are not going to replace years of lost income and they’re probably not going to pay off a mortgage or provide much help paying for college.


And let’s not forget about debt. Did you know the average person pays “rent" on money” (more commonly known as interest) of $8,000 annually? That’s $8,000 – annually – that can’t be saved, invested, or used in any number of ways that would benefit you and yours rather than somebody else and theirs.


Need some help? Know somebody who might? Contact us, we can help put a plan together.


Thing Two


A Snapshot Of Annualized And Cumulative Returns


Before getting to the numbers, a couple of operating definitions are in order:


Annualized Rate of Return  - The return over a period scaled down to a 12-month period. This scaling process allows investors to objectively compare the returns of any assets over any period.


Cumulative Return -  The total return from the beginning of an investment period (purchase) to the end (sale).


With the definitions out of the way, here's a quick look at the annualized and cumulative for Gold, Bonds, and Stocks (S&P 500) taken from Global Financial Data Inc. The data covers the period from 11/30/1973 to 3/31/2020 (~47 years)



Annualized +6.1%

Cumulative +1,456%



Annualized +7.5%

Cumulative +2,758%


S&P 500

Annualized +10.5%

Cumulative +10,204%


Note there are no losers here, but because of the number of years involved and the compounding effect, the S&P 500 is a clear winner


Thing Three


Just A Thought


There are two ways to be fooled. One is to believe what isn't true. The other is to refuse to accept what is true. - Søren Kierkegaard


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