2025 is days away—This email’s a quick reflection on a few things.
First, let’s remind ourselves how even the best long-term investors have been challenged to stay invested throughout it all. Take a glance at some tough financial moments we’ve endured over the past 25 years:
Four Incredible Bear 📉 Markets
- Tech Bubble: S&P 500 -49.1% [March 2000-October 2002]
- Great Recession: S&P 500 -56.8% [October 2007-March 2009]
- COVID-19: S&P 500 -33.9% [February 2020-March 2020]
- Inflation & Supply Chain: S&P 500 -25.4% [January 2022-October 2022]
Inflation
- $1 of goods in 2000, costs approximately $2 today.
However, even given these major challenges, the risk of not investing would’ve REALLY cost you.
$1 of dividends from the S&P 500® in 2000, would be worth $4 today (more than double the rate of inflation).
$1 invested in the S&P 500® in January 2000, would be worth approximately $6 today (ownership), more than triple inflation.
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Even in the most challenging times, enduring companies continue to strive to prosper through innovation and increased productivity.
These companies that have weathered the ups and downs of various market environments are working on the challenges of tomorrow (whatever they may be).
And of course, there will be more bear markets in the future.
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I am also reminded that having a written goals-based financial plan in place is what best allows us to endure some of these emotional and trying times—your plan’s working despite the noise.
We don’t get to ignore the volatility, we must weather it (Four big bear markets), but your financial plan accounts for that.
We don’t merely own “stocks” that trade up & down in milliseconds of time, but we have an ownership stake in these fundamentally strong resilient companies.
The difference in mindset between owning companies and owning stocks was powerful for me personally and I hope you take a moment to reflect on that as well.
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As we turn to 2025, I want to share a big THANK YOU 💜 to all of our Know My Plan clients and centers-of-influence who have made 2024 so incredible.
We have added more great families to our client base this year than any year prior and can’t tell you how excited we are to continue helping so many great people reach the goals going forward.
We appreciate the faith and confidence that you have placed on us to manage your financial plan.
20+ years ago my grandfather said that if I knew how money worked, I would have the opportunity to always have a job, provide for my family, and most importantly help others. He was right.
I believe that we have a long way to go to continue to help even more families achieve their most cherished financial goals but am thrilled at the future opportunity.
If you or someone you’re close to is a high-achieving professional that could use help aligning their finances and establishing a financial plan, please reach out to us, we’re accepting great new clients and eager to help.
Happy New Year,
Nic
