3. The Ride Can Get Rough: Navigating the Ups and Downs of Stock Market Investing

The upward trend in our previous chart shows a clear path to growth, but in reality, the stock market’s journey is anything but smooth. While the long-term direction is positive, the actual path is full of twists, turns, and occasional downturns.

Although aiming for an average annual return of 7% is reasonable—especially as Sound Mind Investing's primary strategies have historically achieved even higher returns—this rate isn’t guaranteed, nor will you hit 7% every year. Some years may yield impressive gains, while others could bring losses.

Before you begin your investing journey, be prepared for market volatility. Remember, the terrain can get rough, but staying committed to your strategy is key to long-term success.

_{Annual returns shown above are based on the Wilshire 5000, the broadest measure of the U.S. stock market.}