If you’re worried about the market being down, remember that it mostly tends to be nowhere close to the 10% average that we often talk about. Since 1926, the market returned between 5% and 15% every one in FIVE years. In its worst year it was down 44% and it was up 54% during its best year. So if the market is down this year… don’t sweat it.

What does this mean for you? First, don’t invest money that you’ll need in the next few years. The stock market is volatile and you could lose a big chunk of your savings right before you need it. Second, it is important to be patient and stay the course. It is especially difficult during times like these, but to quote Warren Buffett, “The stock market is a device for transferring money from the impatient to the patient.”

It would be great if the stock market gave us a steady 10% return every year, but that’s not how it works. Building wealth happens slowly but surely if you are patient and ride the waves of ups and downs… over the course of decades.

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.⁣‎

-Vivi & Shane

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