Let's look at what the stock market (the Dow Jones Industrial Average) has done, by decade since 1900. To understand the chart, if you invested your money in 1900, by 1909 you would have averaged a return of 9.96% per year. If you invested your money in 1910, by 1919 you would have averaged 4.2% during that time per year. To me, what is so incredibly interesting is that even though the markets seem to rocket up and down on an almost daily basis, over the long term it basically always has a positive return. The only exception is during the Great Depression (and the start of World War II) from 1930-1939 and even then the market only averaged a -0.63% return. That is six tenths of one percent! Maybe the "markets" aren't so scary after all.

Stock Market History of Returns

Decade	Average Return Per year
1900s	9.96%
1910s	4.20%
1920s	14.95%
1930s	-0.63%
1940s	8.72%
1950s	19.28%
1960s	7.78%
1970s	5.82%
1980s	17.57%
1990s	18.17%
2000s	1.07%
2010-2013	16.74%

      The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. The value of fixed-income securities may be affected by changing interest rates and changes in credit ratings of the securities.  Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. Indexes are unmanaged portfolios and individuals cannot invest directly in an index.  Actual results will vary. This communication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any securities or product, and does not constitute legal or tax advice. The information contained herein has been obtained from sources believed to be reliable but we do not guarantee accuracy or completeness. Do not act or rely upon the information and advice given in this publication without seeking the services of competent and professional legal, tax, or accounting counsel.