AI Snips
Chapters
Transcript
Episode notes
Power of Small Return Differences
- An extra half a percent return over a lifetime can add over a million dollars to your retirement wealth.
- Small differences in annual returns compound significantly over decades of investing.
Stocks Outperform Bonds Long-Term
- Stocks historically have doubled bond returns over the long term, with the S&P 500 compounding around 10% annually.
- Investing in stocks provides the best long-term growth potential despite market volatility.
Four-Fund Diversification Benefits
- Diversifying with a four-fund strategy balances risk and return by never being the best or worst performer.
- This diversification stabilizes portfolio performance and reduces volatility.