Jeral Mediante

5 Things All Investors Can be Thankful for 1. COMPOUND RETURNS This is the most powerful tool in a longterm investor's arsenal. A simplified example (with easy math): Over time, the stock market's annualized return is roughly 10%. If you invest $10,000 and it earns 10% in a year, you'll have $11,000 at the end of that first year — a gain of $1,000. The second year, if you earn 10% on $11,000, or $1,100 it will bring the total to $12,100. Each year the returns get larger and larger in a phenomenon mathematicians call "exponential growth." 5 Things All Investors Can be Thankful for 2. WARREN BUFFETT The Oracle of Omaha turned 88 this year and we're thankful for the decades of timeless investment wisdom he provides. Here's a favorite that seems fitting given the recent market environment. "The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd." 5 Things All Investors Can be Thankful for 3. THE WAR ON FEES Investment fund and brokerage commission fees are getting lower across the board. Low-cost index funds are reducing their costs which then puts pricing pressure on actively managed funds, pushing prices down industrywide. The same goes for lowand no-cost stock trading platforms that are changing the game for brokerages. That means more money in your (portfolio) pocket! 5 Things All Investors Can be Thankful for 4. TAX-ADVANTAGED INVESTING For anyone contributing to your taxadvantaged retirement account, say a quick thanks for how it helps lower your tax bill. The maximum contribution limits are going up for several popular options next year, as well. 5 Things All Investors Can be Thankful for 5. MARKET VOLATILITY Ok, so this might sound a little weird. But, generally, long-term investors love a volatile stock market as they produce some of the best bargains. While no one enjoys watching the value of their portfolio go down, if you have a long-term perspective these rocky stretches don't tend to last that long and when the dust settles you'll be thankful you did some bargain hunting.