Know Facts About Wealth Protection

Many investors, despite the current financial crisis, are still cautious or don’t see the value of diversifying their portfolios and investing in silver and gold. Many people seem to think that Los Angeles’s asset protection and capital preservation are foreign concepts.

 Older generations still believe that investing in the stock market over the long term will make you money and preserve your capital. This was possible prior to 2000 when stocks had consistently delivered positive returns every ten years. The return on stocks has been zero for the past ten years. The fundamental nature of markets has changed, and the long-term is now considered to be milliseconds.

Wealth Protection - Cornerstone Planners

A second point is that a dollar of 1913, when the Federal Reserve was founded, is worth only one cent today. This means that you have lost 99% of your purchasing ability and stock returns must be higher than 100% to be in the same place as before.

 Let’s now consider what would have happened if you had made investments in Gold or Silver. One of the best examples I’ve heard about the constant value of gold is the fact that you could buy a suit for men in 1913 using an ounce-gold coin. Today, you can do the same thing with the same coin.

We romanticize stock market returns from the late 1990s to 2000, and again until 2007. These returns were not normal and they were an aberration. Many investors lost a large portion of their capital in pursuit of these returns.