Check out the insights, free information, financial calculators and special products to help you achieve your financial goals. The ant, operating on realistic assumptions, amply prepared for winter. The grasshopper, operating on assumptions of perpetual plenty, was unprepared to survive the winter.
Financial planning is like that fable.
Realistic assumptions based on a long-term, balanced plan will help you prepare so you won't be left in the cold. If you believe this is the only investment you need for financial security, your assumption may foil your financial plans. Average returns can vary widely, so it's important to view the larger picture before making investment decisions. As the above table shows, returns are inconsistent within the investment period of 1926 to 1999. Although that difference alone is enough to make you want to re-evaluate your assumptions, it's not the only consideration.