By It’s no secret that investing for retirement involves some level of uncertainty. Depending on your personality, that uncertainty may deter you from taking risk, or it may entice you to go big and chase a larger potential return.
You’ll read all over the internet that the next great investment opportunity is right around the corner, if you can just get in early enough or outsmart the system. And there are always going to be stocks that run up like crazy over a short period of time. But historically, those aren’t stocks that anybody talks about 10 years later. They are often a flash in the pan, and by the time you see it, it’s too late.
There is, however, a great opportunity sitting right there for young investors — it’s 20-plus years before retirement. And while past performance is not a guarantee of future gains, investing steadily in our greatest American companies has historically been a smart choice for long-term investors.
Confidence in anything, particularly investing, comes down to having both proper knowledge and a track record to reference. Those two things help create a sound strategy that can help to maintain that confidence, even when things get difficult.
This year is a great example. We started 2026 with a big dip in the market, and the conversation I had with a lot of clients after they saw their statements down 5-7% was, do we need to do something different?
Let’s look a little deeper. Nothing has fundamentally changed with the individual stocks we own. They’re hitting earnings goals and growing within expectations. But the overall market is down, which suggests to me that, if there’s nothing wrong with our stocks, there may be an external factor at play, like the conflict in Iran.
In fact, you can look throughout history and see that, when big events like this pop up, markets often react negatively. Then what happens? They have historically recovered. With that in mind, what we should do with our money becomes apparent.
A lot of people think a boring, 10% return will never get them to retirement. That’s not necessarily true. Millennials and Gen Z have a lot of time to be boring now so that they can still work toward a great retirement. Consistent returns from a disciplined approach can help you work toward your goals.
One more thing I want to mention is that there is a growing trend of young people being duped by the idea that the prediction market is investing. It’s not. It’s gambling. You’re not buying a company that provides a product or service and makes a profit. You’re just betting A, B, or C. If you want to play with that, be sure it’s with money you’re comfortable losing, typically a small portion of your overall portfolio. Understand that you’re playing a game that may lose more often than it wins. The same goes for meme stocks. It can be exciting, but it may not be an effective way to confidently invest for a fulfilling retirement.
My team at Family Financial Partners values consistency, and our clients place their confidence in our investment strategies because we have the experience and the knowledge to help them work toward their goals. Reach out today, and let us build a strategy that can provide you with that same confidence.
This material is provided for informational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities. All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.
Article by Kyrk Davis, Wealth Advisor at Family Financial Partners — a financial services firm in Lexington, Kentucky.