Long-Term Investing 101

Keep these basic investing principles in mind to help you pursue your long-term goals. Investing for retirement can be intimidating for many people. Keeping these basic principles in mind can help you pursue your long-term goals. Have Realistic Expectations Be realistic about how well your investments will perform. If you are too optimistic, you could underestimate how much you should be contributing to your retirement account to reach your savings target. Instead of counting on big stock gains, it's generally smarter in the long run to diversify* your investments. And always contribute an adequate amount, regardless of how the investment markets are performing. Avoid Hot Trends Hot investing trends can catch the attention of inexperienced investors. However, trends tend to fizzle out as quickly as they started, leaving inexperienced investors with losses. Rather than chasing trends, choose investments that are an appropriate match for your risk tolerance, the amount of time you have to invest, and your investing objectives. Learn to Live With Volatility The stock market rises on some days and falls on others -- sometimes by a lot. When the market tumbles, you might be tempted to sell your stock funds or portfolios and buy less risky investments. However, periods of poor market performance are to be expected when you're investing to reach long-term goals. While downturns are discouraging, the stock market historically has recovered from every downturn.** Over time, periodic setbacks may be followed by periods of strong growth. Unless you'll need your money soon, it may be better to look beyond short-term volatility and stick with your investment strategy.

Staying Invested Through Up and Down Years Investors earned a 9.92% average annual return from stocks as measured by the S&P 500 stock index over 20 years despite significant market volatility during this time period.**
S&P 500: January 1, 2001-August 31, 2023 **
Highest Average Annual Total Return	32.39% (2013)
Lowest Average Annual Total Return	-36.99% (2008)
20-Year Average Annual Return	9.92%
Source: DST Retirement Solutions, LLC, an SS&C company

Disclaimer: *Diversification does not guarantee a profit or provide protection against losses in a declining market. **Past performance does not guarantee future results. The information and general descriptions found in this article are designed to help you understand some of the factors you should generally consider when evaluating the appropriateness of any strategy or investment within your retirement plan. Any description included is for informational and educational purposes and for your independent consideration only; it should not be regarded or viewed as advice or as a recommendation to take (or refrain from taking) any particular action. By providing this information, we assume that you can evaluate this information and the general descriptions found here to exercise your independent judgment. Banco Popular de Puerto Rico, its subsidiaries and/or affiliates are not engaged in rendering legal, accounting or tax advice services. If legal, accounting, or tax advice services are required, you should seek the services of a competent professional. Investment products are not insured by the FDIC, they are not deposits or obligations of, nor are they guaranteed by Banco Popular de Puerto Rico, its affiliates and/or subsidiaries; involve risks, may lose value, including the possible loss of the principal invested. Because of the possibility of human or mechanical error by SS&C or its sources, neither SS&C nor its sources guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. In no event shall SS&C be liable for any indirect, special or consequential damages in connection with subscriber's or others' use of the content. © 2023 SS&C. Reproduction in whole or in part prohibited, except by permission. All rights reserved. Not responsible for any errors or omissions.