Perspective: Keeping your head when all around you are losing theirs

• Laura Ricci• Milwaukee Bogleheads• May 3, 2016

Beginner Level Expertise Ages: 40’s to retirement

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Milwaukee Bogleheads®

• A DIY investment group, followers of John Bogle's Index investing strategies, the Milwaukee local chapter of Bogleheads.

• This presentation was made May 3, 2016 by Laura Ricci of our chapter.

Stay the Course

• One of the key Boglehead rules, and it is challenging when the markets are scary.

• In 2015, we reached the end of several years of outstanding profits, and watched as our portfolios sank a bit, recovered and then sank again.

• Should we stay the course?

This was my portfolio in Feb ‘16 over One Year.

I would have been better off with my money under my mattress!

But here’s my portfolio over 3 years.

Same portfolio over 5 years. Looks nice and smooth, doesn’t it?

Perspective• Remember that you need to keep a broad

perspective when your objective is long term.

• Staying the Course requires:o Nerves of steel if you follow the market too closely. o Perspectiveo Or the ability to ignore the news and not worry.

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Disclaimer

• All examples are for illustration purposes only and are not investment recommendations.

• The views expressed in the presentation, are those of the presenter, commenters, guests and participants and may not reflect the views of the Bogleheads organization.

• Use your discretion in using examples presented here for your own investment purposes.