Stock market performance in the recent past has clearly damaged the “buy-and-hold” strategy, which worked well in previous decades. Any financial advisor could present an Ibbottson chart showing the long-term performance of equities and cite the expected 10% return from investing in equities that had historically had the answer to meeting the plan of the client.

The problem with this is that a chart showing a track record since the end of the eighteenth century just did not match the client’s life span. Even using a rolling 10-year track record to provide a basis for planning was impaired. The past three years of the current 10-year rolling average return will show a return that does not meet the required growth rate of assets to be attained for future usage.

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