When it comes to stock market investing the most important and talked about component is rate of return. Typical financial planning calls for putting your wealth in the stock market and holding it there for the long term. We have all seen the ‘mountain charts’ illustrating what would have happened if your Great Grandpa had invested $100 in the stock market in 1900. However there are significant headwinds or “wealth erosions” as we call them that are squarely in our path.
In this video we discuss what the four wealth erosions are and how they have impacted American wealth for years, and how they will continue to impact us unless we make changes to our strategy. Eric jumps into the numbers of what rate of return you need to earn in your market based investments simply to break even, or negate, these four wealth erosions.