A visual aid for staying the course: In 2008, a portfolio with moderate asset allocation of 60 percent stocks and 40 percent bonds lost 24 percent of its value. If you did nothing and held on for one more year, you would have recovered all those losses. But look what happened if you held on through the end of 2014: Your annualized returns would have been 6.2 percent.

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The Importance of Time Horizon

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