This hypothetical example is used for illustrative purposes only. The returns shown do not include taxes, fees, and other expenses typically associated with investing. Past performance is no guarantee of future results. Actual results will vary. Source: London Stock Exchange Group, 2024, for the period 1/1/2004 to 12/31/2023. Stocks are represented by the S&P 500 composite index total return; bonds by the Citigroup Corporate Bond Composite Index; and cash alternatives by the Citigroup One-Month Treasury Bill Index. The performance of an unmanaged index is not indicative of the performance of any specific security. Individuals cannot invest directly in an index. T-bills are backed by the full faith and credit of the U.S. government as to the timely payment of principal and interest. The return and principal value of an investment in stocks and bonds fluctuate with changes in market conditions, and, when sold, these securities may be worth more or less than the original investment amounts. Keep Expectations in Check Because your financial strategy depends on the performance of your investments, it’s important to be realistic about the return your portfolio may yield from one year to the next. Inflated expectations may cause you to fall short of your goals. As you can see from the 20-year performance below, the aggressive portfolio experienced a 29.65% loss in its worst-performing year, compared with a 15.76% loss for the conservative portfolio. Younger investors who experience losses during their accumulation years may have a better opportunity to recover. However, losses experienced as you approach retirement could have a significant impact on the longevity of a retirement portfolio. Sample Portfolio Performance, 2004 to 2023 Best year 20.22% Worst year –15.76% Avg. annual 6.19% Best year 28.33% Worst year –29.65% Avg. annual 8.70% Stocks Bonds Cash Aggressive Moderate Conservative Conservative portfolio 50% 30% 20% Older investor Younger investor Aggressive Moderate Conservative 20% 75% Aggressive portfolio 5%
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