PRINCIPLE #3: HARNESS THE POWER OF DIVIDENDS AND COMPOUNDING
IS TIME ON YOUR SIDE? IT IS IF YOU USE IT WISELY.
While water and sun will grow a tree, fertilizer can take it to even greater heights. The same goes for reinvesting. Let’s work together to nurture stronger portfolios.
The power of dividends and compounding
In this simple illustration, an initial investment of $10,000 in the S&P 500 price return index would have grown to nearly $300,000 since 1970. But if dividend payments were included, reinvested and allowed to compound over time, that same $10,000 investment would be worth more than $1,200,000 today.
Investing in risk assets is critical
Many investors shy away from the stock market, unwilling to take on added risk. But this chart shows a staggering difference in the value of $10,000 invested in a variety of different asset classes over time, ranging from low-risk T-bills to U.S. small cap stocks.
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USE EVERY ASSET CLASS TO YOUR ADVANTAGE
We offer investment strategies covering all asset classes for diversification and risk management to help you and your clients build stronger portfolios.
Diversification does not guarantee investment returns and does not eliminate the risk of loss. Diversification among investment options and asset classes may help to reduce overall volatility.