The Pain to Gain Ratio

• If you lose 5% of your portfolio, it takes a gain of 5.3% to get back to even.
• If you lose 20% of your portfolio, it takes a gain of 25% to get back to even.
• If you lose 50% of your portfolio, it takes a gain of 100% to get back to even.
• If you lose 90% of your portfolio, it takes a gain of 900% to get back to even.

photo by:kisa naumova

Conclusion: If you limit your losses, the road back to prosperity is much easier. Work with your financial advisor to develop an investment strategy that appropriately reflects your individual risk tolerance.