Best Certified Public Accountants in Castle Rock, CO

Build Your Retirement on a Strong Foundation There is a familiar parable about the wise man and the foolish man. The wise man built his house upon a rock. When the rain fell, the floods came, and the winds blew. The house did not fall because it was built upon a rock. The foolish man built his house upon the sand. When the rain fell, the floods came, and the winds blew. The house built upon the sand fell. Many Americans sticking to conventional wisdom are building their retirement on shaky foundations. Tax-deferred money in 401(k)s, 403(b)s, IR As, etc. can be a risky foundation because of: Where the money is invested Future taxes Fees Tax-Deferred Money Invested in the Market Investors often invest money from tax-deferred plans in the stock market. Your hard-earned money is at risk for market loss! The years from 2000 to 2010 are frequently called “The Lost Decade for Stocks.” If you had $1 million in the market in 2000 and rode the market for the next 10 years, you would have just under $1 million at the end of 2009. The S&P 500 annualized return over that decade was – 0.9%. It wasn’t until mid-2012 that the market returned to its starting point of 01/01/2000. Investors (people who had their money in the market) lost trillions of dollars. Not only that, they also lost the opportunity to earn money on that investment over those 12 years. It’s called Opportunity Cost. Click the button below to read the rest of the post.