Chart Series Archives – Gilbert Wealth

After the Fall: What History Tells Us About Markets That Drop 25%

When the market drops 25%, it doesn’t just sting—it rattles us. Headlines scream recession, portfolios shrink, the normal group of permabears wake from their slumber to talk gold, and emotions take over. In those moments, it’s natural to wonder: Is this different? Should I get out before it gets worse?It's times like these that I look back to what history has shown us in the past to gain reassurance. History has a story to tell. And it's a story worth listening to. History of 25% Downturns Since 1950, there have been nine times when the U.S. stock market fell at least…

The Power of Starting Early: How Saving Less Can Lead to More

This is a story of “Saving Sara” and “Delay Dan”. Both Sara and Dan start their first job at 21. While they aren't earning much, they do have money left over after their needs are met.Sara, having learned the power of saving early, begins investing $2,000 per year at age 21 and stops after just 10 years.Dan decides to put off saving and spends his surplus income. He waits until age 31. Trying to catch up, he invests $3,000 annually - $1,000 more per year than Sara did - for the next 35 years.So who ends up with more by age…

The Powerful Role of Compound Growth in Reaching $1 Million

When it comes to building wealth, time is one of the most powerful tools at your disposal. The image below illustrates a profound financial truth: the longer you give your money to grow, the less you have to invest each year to reach your financial goal. And the math is striking. The Cost of Waiting The chart shows how much money you need to invest annually to accumulate $1 million over different time horizons, assuming an 8% average annual return—a historically reasonable rate based on long-term stock market returns. The math is straightforward but stunning. Take an example of a new…

A Brief History of the Ups and Downs of the Market

Investing in the stock market is a lot like riding a roller coaster—you know there will be drops, but that doesn’t mean your stomach won’t lurch when they happen. Every investor dreams of a smooth, uphill ride to wealth, but in reality, markets take detours, hit potholes, and sometimes feel like they’ve been hijacked by a mischievous toddler at the controls. Yet, history shows that those who hang on tight and resist the urge to jump off mid-ride are usually the ones who reach their destination with the best returns. On average, the S&P 500 has increased in price by…

Yearly Asset Class Returns Through 2023

Key take aways Diversification is a great way to reduce the volatility of your portfolio. It is hard to predict which asset class will be the winner from year to year. How do you read the chart? The chart presents the annual returns for 9 major investment asset classes from 2009 to 2023. A tenth box is added to represent a sample "Asset Allocation" portfolio as discussed below. Each asset class and portfolio is assigned a color. Here is a guide to the labels and what they mean: Equity or Stocks Large Cap is the return of the largest 500 companies by…

Yearly Asset Class Returns Through 2022

Key take aways Diversification is a great way to reduce the volatility of your portfolio. It is hard to predict which asset class will be the winner from year to year. How do you read the chart? The chart presents the annual returns for 9 major investment asset classes from 2008 to 2022. A tenth box is added to represent a sample "Asset Allocation" portfolio as discussed below. Each asset class and portfolio is assigned a color. Here is a guide to the labels and what they mean: Equity or Stocks Large Cap is the return of the largest 500 companies by…