Investing in your future pretty much requires that investors have patience. I know, I know—it is easier said than done.
The historical proof is in the pudding. There has never been a 20-year period where the stock market has not had a positive return, although this does not guarantee the future will be like the past. One-year returns and even five-year returns have included many negative periods. This shows that investors willing to accept short-term losses can reasonably expect better long-term outcomes.
Very few things in life are guaranteed, and investment gains are not one of them. However, there is a high likelihood of success when you give yourself and your investments enough time.
Planning for retirement, buying a new home, or saving for a child’s education are important financial decisions. You can put the odds more in your favor by ignoring short-term noise and focusing on what the long term can likely provide.
