{"id":105878,"date":"2017-05-11T09:52:34","date_gmt":"2017-05-11T13:52:34","guid":{"rendered":"http:\/\/countingpips.com\/?p=105878"},"modified":"2017-05-11T06:53:06","modified_gmt":"2017-05-11T10:53:06","slug":"dangerous-retirement-myth-busted","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/05\/dangerous-retirement-myth-busted\/","title":{"rendered":"Dangerous Retirement Myth \u2013 BUSTED"},"content":{"rendered":"<div id=\"inves-3913173022\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">May 11, 2017<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p>By <a href=\"http:\/\/WallStreetDaily.com\/\"><u>WallStreetDaily.com<\/u><\/a> <img loading=\"lazy\" decoding=\"async\" class=\"attachment-home-th size-home-th wp-post-image\" style=\"display: block; margin-bottom: 5px; clear: both;\" src=\"https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/05\/0517_retirement_feature2.jpg\" sizes=\"auto, (max-width: 580px) 100vw, 580px\" srcset=\"https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/05\/0517_retirement_feature2.jpg 580w, https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/05\/0517_retirement_feature2-300x155.jpg 300w\" alt=\"Dangerous Retirement Myth \u2013 BUSTED\" width=\"580\" height=\"300\" \/><\/p>\n<ul>\n<li>Shocking number of Americans aren\u2019t ready for retirement.<\/li>\n<li>The No. 1 strategy if you\u2019re reaching retirement age.<\/li>\n<li>Ignore this myth about savings, or regret it forever.<\/li>\n<li><a href=\"https:\/\/pro.agorafinancial.com\/m\/675077\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Also recommended: Trump, the retirement savior?<\/strong><\/a><\/li>\n<\/ul>\n<hr \/>\n<p><img decoding=\"async\" style=\"float: left; max-width: 85px;\" src=\"https:\/\/duip7hn7nchpo.cloudfront.net\/editor-circle-louis-basenese.jpg\" alt=\"Louis Basenese\" \/>Retirement is supposed to be a fantastic, worry-free phase of our lives.<\/p>\n<p>But for many folks, approaching the end of their \u201cworking\u201d lives is not met with joy.<\/p>\n<p>A deep-seated fear takes hold instead.<\/p>\n<p>That\u2019s because a large number of Americans lack the money to truly enjoy their golden years.<\/p>\n<p>In fact, nearly half of U.S. families are without any retirement savings at all, according to the Economic Policy Institute.<\/p><div id=\"inves-367711768\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p>And another half \u2014 the ones who do have a nest egg \u2014 aren\u2019t anywhere near a comfortable level.<\/p>\n<p>But rest assured, there\u2019s hope\u2026<\/p>\n<p>As senior analyst Jonathan Rodriguez points out below, there\u2019s an asset class that could help blast your savings into hyper drive.<\/p>\n<p>Ahead of the tape,<\/p>\n<p>Louis Basenese<br \/>\nChief Investment Strategist, <i>Wall Street Daily<\/i><\/p>\n<hr \/>\n<h2 class=\"headline\">The Myth Holding American Savers Back<\/h2>\n<p><img decoding=\"async\" style=\"float: left; max-width: 85px;\" src=\"http:\/\/duip7hn7nchpo.cloudfront.net\/editor-circle-jonathan-rodriguez.jpg\" alt=\"Jonathan Rodriguez\" align=\"left\" \/>When it comes to personal wealth, there\u2019s no question that stocks provide individuals the best opportunity to grow their savings over time.<\/p>\n<p>This has been especially true over the last decade, with interest rates near zero and inflation practically a nonfactor.<\/p>\n<p>According to data from financial author Joshua Kennon, for almost two centuries, stocks have generated an average inflation-adjusted return of 7%. That\u2019s twice the real return of bonds, and dramatically more than gold.<\/p>\n<p>But as you know, stocks come in all shapes and sizes.<\/p>\n<p>These days, the average investor piles their money into large-cap stocks \u2014 through basket funds or individual names \u2014 and hopes for the best.<\/p>\n<p>For most people with time on their side, that\u2019s not a bad plan.<\/p>\n<p>Large-cap stocks comprise the market\u2019s largest, most mature companies with the most predictable cash flows.<\/p>\n<p>And over the last 20 years, the S&amp;P 500 has produced average annual total returns of 7.6% \u2014 well above the 4.1% annual return the 10-year Treasury.<\/p>\n<p>But for folks that are behind on their savings or have none at all\u2026 taking on a little more risk could go a long way to building up retirement reserves.<\/p>\n<h2 class=\"subhead\">Small Caps to the Rescue<\/h2>\n<p>Small-cap stocks \u2014 companies with market capitalizations of $2 billion or less \u2014 offer investors the best way to turbocharge their savings.<\/p>\n<p>Since 1996, small caps have posted an average 10.9% total return per year \u2014 three percentage points higher than large-cap issues.<\/p>\n<p>To be fair, small caps are historically more volatile than large caps.<\/p>\n<p>In the last two decades, the Russell 2000 sports a standard deviation of 18.99% from the mean total return, versus 17.86% for the S&amp;P 500.<\/p>\n<p>Now, I know what you might be thinking\u2026<\/p>\n<p>Small caps appear to give savers a <i>slightly<\/i> better return over large caps. But they also feature a higher degree of risk.<\/p>\n<p>And the trade-off can\u2019t be worth it, right?<\/p>\n<p>Well, here\u2019s where things get really interesting\u2026<\/p>\n<h2 class=\"subhead\">The Tale of the Rolling Tape<\/h2>\n<p>As you can imagine, calendar-year returns only tell investors part of the story.<\/p>\n<p>They tell you what you would have made on an asset, on average, if you had invested at one finite point in time and cashed out at another.<\/p>\n<p>However, this is a little misleading.<\/p>\n<p>Calendar-year returns usually represent periods starting in January and ending in December.<\/p>\n<p>Rolling annual returns, on the other hand, measure <i>all<\/i> the one-year periods between two points in time.<\/p>\n<p>This is much closer to what an investor would actually experience in the real world.<\/p>\n<p>By viewing the returns of the S&amp;P 500 and Russell 2000 on a rolling basis, the outperformance of small caps is far more profound \u2014 especially when you look at the biggest gains and losses.<\/p>\n<p>According to financial analyst Dana Anspach, between 1973 and 2016, the S&amp;P 500 posted its best year (61%) in the trailing 12 months ending in June 1983.<\/p>\n<p>Its worst year produced a loss of 43% in the 12 months ending February 2009.<\/p>\n<p>But over the same period, the Russell 2000 handed investors a 97% gain in its best one-year period (ending June 1983) and a 42% loss in its worst year (like the S&amp;P 500, also ending February 2009).<\/p>\n<p>In other words, in a given rolling one-year period, small caps give savers the largest potential bang for their buck and almost identical risk to the downside as large caps.<\/p>\n<p>Bottom line: Large-cap stocks offer investors a smoother ride than small caps, but the market\u2019s smallest stocks can help turbocharge your savings \u2014 with less risk over blue chips than you might think.<\/p>\n<p>For an easy way to dive into small-cap investing, check out our flagship newsletter, <i>True Alpha. <\/i>Its model portfolio is full of tiny innovative companies that can take your retirement to the next level. Check out this information regarding <a href=\"https:\/\/pro.agorafinancial.com\/m\/675077\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Trump\u2019s retirement blueprint<\/strong><\/a>, which includes details on how to join.<\/p>\n<p>On the hunt,<\/p>\n<p>Jonathan Rodriguez<br \/>\nSenior Analyst, <i>Wall Street Daily <\/i><\/p>\n<p>The post <a href=\"https:\/\/www.wallstreetdaily.com\/2017\/05\/11\/dangerous-retirement-myth-busted\/\" rel=\"nofollow\">Dangerous Retirement Myth \u2013 BUSTED<\/a> appeared first on <a href=\"https:\/\/www.wallstreetdaily.com\" rel=\"nofollow\">Wall Street Daily<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By WallStreetDaily.com Shocking number of Americans aren\u2019t ready for retirement. The No. 1 strategy if you\u2019re reaching retirement age. Ignore this myth about savings, or regret it forever. Also recommended: Trump, the retirement savior? Retirement is supposed to be a fantastic, worry-free phase of our lives. But for many folks, approaching the end of their [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-105878","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/105878","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=105878"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/105878\/revisions"}],"predecessor-version":[{"id":105888,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/105878\/revisions\/105888"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=105878"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=105878"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=105878"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}