The historical benefit of “staying the course”
Description: The historical benefit of staying the course during market swings Many individuals may be tempted to make changes to their retirement savings approach during periods of market uncertainty. They may consider moving their savings to more
Related Topics
Download Presentation
"The historical benefit of “staying the course”" is the property of its rightful owner. Permission is granted to download and print the materials on this website for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Presentation Transcript
slide1. The historical benefit of “staying the course” during market
swings Many individuals may be tempted to make changes to their retirement savings approach during periods of market uncertainty. They may consider moving their savings to more conservative investment options or decreasing their contribution rates, but these steps could have long- term impacts on their retirement readiness.
The following illustration compares individuals who moved completely out of stocks between 2022 and 2024 and found that they have fallen behind those that stayed invested.1 Review your employer-sponsored account by visiting NetBenefits.com/Dashboard $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 Oct-24 Breakeven
Stay the course, keep contributing, rebalance annually Move to cash, keep contributing to cash
Move to cash, stop contributing 1 – For illustration only. The charts assume a starting balance of $100,000 invested in growth TAM (70% stocks, 20% bonds, and 5% cash). Stocks are represented by the Dow Jones Total Stock Market Index. Bonds are represented by the Barclays Aggregate Bond Index. Cash is represented by the IA SBBI US 30-day T-Bill. The stay the course scenario assumes keeping investment in the same asset mix, annual rebalancing and additional contributions of $10,000 per year to the same asset mix. The bail out scenario assumes moving to cash in July 2022 after market dropped 20% and additional contributions of $10,000 per year to cash. The give up scenario assumes moving to cash in July 2022 after market dropped 20% and no contributions. Time periods show balance changes from the January 2022 to December 2024. Balances do not show the impact of taxes or expenses. Past performance is not a guarantee of future results.
Source: Fidelity Financial Solutions Team.
Investing involves risk, including the risk of loss.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
© 2025 FMR LLC. All rights reserved. 776939.6.0<br>
swings Many individuals may be tempted to make changes to their retirement savings approach during periods of market uncertainty. They may consider moving their savings to more conservative investment options or decreasing their contribution rates, but these steps could have long- term impacts on their retirement readiness.
The following illustration compares individuals who moved completely out of stocks between 2022 and 2024 and found that they have fallen behind those that stayed invested.1 Review your employer-sponsored account by visiting NetBenefits.com/Dashboard $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 Oct-24 Breakeven
Stay the course, keep contributing, rebalance annually Move to cash, keep contributing to cash
Move to cash, stop contributing 1 – For illustration only. The charts assume a starting balance of $100,000 invested in growth TAM (70% stocks, 20% bonds, and 5% cash). Stocks are represented by the Dow Jones Total Stock Market Index. Bonds are represented by the Barclays Aggregate Bond Index. Cash is represented by the IA SBBI US 30-day T-Bill. The stay the course scenario assumes keeping investment in the same asset mix, annual rebalancing and additional contributions of $10,000 per year to the same asset mix. The bail out scenario assumes moving to cash in July 2022 after market dropped 20% and additional contributions of $10,000 per year to cash. The give up scenario assumes moving to cash in July 2022 after market dropped 20% and no contributions. Time periods show balance changes from the January 2022 to December 2024. Balances do not show the impact of taxes or expenses. Past performance is not a guarantee of future results.
Source: Fidelity Financial Solutions Team.
Investing involves risk, including the risk of loss.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
© 2025 FMR LLC. All rights reserved. 776939.6.0<br>