S&P 500 intra year declines vs calendar year returns
 

The chart you’re looking at is the calendar year returns on the S&P 500 going back to 1980. There’s a lot of data here, so let’s just deal with the far left-hand side for example, 1980. In the calendar year 1980, the stock market went up 26%. Pretty good year. But what that red dot is showing is the inter-year decline of 17%. So think about what happened here. As the market begins a new year in 1980 obviously, it must have started to accelerate to the positive, and it goes up for a while. And then it rolls over, starts to go down, and everybody has a different threshold of pain, and it goes down 5, 6, 7%, and all of a sudden, we’re reading about Brexit or default or fiscal cliffs, and we become concerned. At some point as it goes down to, let’s say, 12, 13%, we believe that we should extricate ourselves from the market. This is fun with math only, but on that red dot, down 17%, if you got out of the market on that day, your cost of opportunity was 40%, because if you put a dollar in on that day, you got a 40% return. That’s how you win. You cannot achieve your long-term goals in the stock market by consistently crystallizing losses every time it goes down.

The important thing to note on this chart is those red dots, that every year without exception, at some point during the year, there is a negative rate of return achieved. It’s how you deal with that event that will determine how financially successful you are over time.

Just some food for thought. It's what i live by

Take care everyone

Buying 70,80,90,k trucks or SUVs

Is NOT living within your means.

The Rich put their money to work.

They buy assets that appreciate in value, borrow AGAINST those assets. Now you have a loan and IF you borrow to invest the interest is tax deductible.

Too many out there want every toy in the book....so they look rich but their bank accounts are empty.

Then when they hit retirement age they are screwed.

Their standard of living drops to that of someone living on the poverty line.

STOP buying liabilities that depreciate in value....

This is good advice right here. Buy things that make you money. With regards to the market if you're invested in a company that's not paying a dividend it's not an investment. Its speculation that the stock will grow over time. I may not see the huge returns of some on here but I get my 5-6% every year no matter what the market does. The bonus is dividend stocks are usually valued higher, and therefore have more demand. As a result the stock usually holds its value as long as they can pay the dividend.

x3

I hope the OP takes the time to read this & understand it. I started investing in my 20's because my workplace had a 'voluntary' matching RRSP. It was voluntary but there was a lot of pressure to join.:snapoutofit:

Totally young & naive, I was lucky enough to get some decent returns early, back when you got a paper statement quarterly. I was naive yes, but I could read, & I could see the numbers getting larger through growth, despite bigass recessions & downturns.

Dave Ramsay's total money make over

And John Bogle's The Little Book of Common Sense Investing

This is sound advice.

Even though today interest rates are so low it's hard for even large pension funds have trouble making yields.

The beauty of compound interest, reinvestment of tax returns.

Start when your 18(10% per year) and by the time your 58 you will likely be wealthy.....

Check out the Money Guy Show on youtube or podcasts. These guys are great at explaining the power of compound interest. Obviously the earlier you start the better but they show examples on how powerful your money can be in your 30s, 40s, and even 50s. Turning 34. Really wish I started out of high school as opposed to 27 years old but it is never to late!

If you want to be a DIYer something like Vanguard's VBAL is worth looking at.

Yes been reading every comment. Very helpful and have started looking at ETF's more In last few days. I started the thread for my self and any one else that might need advice but was to shy to ask. Hopefully it helps others also. Keep up the great advice and experiences and options. I really appreciate it, and I'm sure a few others do also.

If you have enough to invest, mobile home park, minimum of 35 units. Letterbox money, recession proof with a cap rate of 7%+

Storage is even better.... It’s a license to print money.... But trying to find one for sale is a totally different story...

If you max your RRSPs, and your TFSA, and set them up as self directed investment accounts, you can use the tax advantages, and still invest as you choose. And as long as you don't withdraw funds from the accounts, you can buy and sell with no tax implications.