{"id":18795,"date":"2025-01-09T15:21:47","date_gmt":"2025-01-09T15:21:47","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/finance\/do-not-zoom-in-on-monthly-returns\/"},"modified":"2025-01-09T15:21:47","modified_gmt":"2025-01-09T15:21:47","slug":"do-not-zoom-in-on-monthly-returns","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=18795","title":{"rendered":"Do Not Zoom in On Monthly Returns"},"content":{"rendered":"


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I\u2019ve had a few clients reach out to me over the past couple weeks (the last week of December 2024<\/em> & first week of 2025<\/em>) with similar concerns: <\/p>\n

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\u201cHow and why<\/strong><\/em> did my account go down at the end of 2024?!\u201d<\/em><\/strong><\/p>\n<\/blockquote>\n

The short answer: accounts are down because the market is down, and the market is down due to inflation and interest rate fears that were stoked by the December 17\/18th Federal Reserve meeting. <\/p>\n

But that\u2019s not<\/strong> what I want to focus on today. <\/p>\n

Instead, I want to focus on the true genesis of the question: these clients noticed a 1% to 2% drop in December, and that was cause for concern . For a $1MM account, that\u2019s a $10,000 to $20,000 decrease. And I get it \u2013 the idea of \u201closing\u201d $20,000 in a single month would furrow anyone\u2019s brow! <\/p>\n

I want to address that stress today. Looking at investment returns over a single month \u2013 any<\/em> single month \u2013 isn\u2019t ideal. It\u2019s a case of \u201cmissing the forest for the trees.\u201d It\u2019s too zoomed in. We need to zoom out! <\/p>\n

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\"woman<\/figure>\n<\/div>\n

I want to show you why. <\/p>\n

Let\u2019s Look at Some Numbers<\/h2>\n

Imagine someone who retired in 2003. They were 58 then, they\u2019re 80 now. They\u2019ve followed many simple investing tenets described here on The Best Interest<\/em>. <\/p>\n