Matt, Mr. Damon King, Victoria Wood discussed on Chappelwood Financial with Victoria Woods
Welcome back to it's all about the money. Honey, I'm your host. They told me the fun into a my name is Victoria Wood's coming to you from lab here from the Davis studio with Mr. Damon king. He is a CFP professional and wealth management specialist as well at Jeff what? Now, we've got another Dave alert for you this week. And in light of the pullback we saw in the fourth quarter in twenty eighteen a lotta people been asking how much growth will I need to say in order to regain any of those paper losses that I had you know, 'cause I got my report I saw is on the paper. There was a decrease, and it was pretty substantial for a lot of people. This is really interesting question. Because a lot of you might think, well, if my decrease was ten percent, then I need to gain ten percent back to get even right? Same. Simple. Simple. Matt. Actually doesn't add up that way. Let me explain to you, what suppose you had one hundred thousand dollars. So your portfolio lost ten percent that pretend percent decrease is ten thousand dollars. Right. Gin. Simple, matt. But now you're account is at nine hundred thousand if you get a gain of ten percent on that. That's not going to get you there. Right. The loss was ten thousand your gain ten percent on ninety is now nine thousand your thousand dollar short. So what does that mean just to get back to your hundred thousand your gain needs to be eleven point two percent? Now, we've got this handy dandy. Little little slide rules, which I just think are like reminds me of Mr A dollar in in school and high school. He was our chemistry teacher he'd level role thing going on. So if you wanna get back though to even you have this twenty percent you need to get twenty five percent game. You have a decrease. Of thirty five percent, you need to get a fifty three point nine percent. If you had a loss, which a lot of people did, and they panicked and push the button in two thousand eight most people starting nine percent. I saw so many accounts that were fifty percent more because they were very very high risk profiles. But if you did that in two thousand eight you know, you need a hundred percent gain to get back to even think about that. Down fifty I could get one hundred percent back. So the moral of the story is if you truly want to reduce the amount of return you need to maintain your accounts. Limit your losses. Now. How do we do that? We do it. Why by protecting your assets, and we can show you a simple strategy. Our clients have been using for thirty years because this strategy has no face has no risk of loss has the potential for market linked interest. And it has some liquidity who wouldn't want all of that. Right..