Question:
❓If your portfolio drops 20%, how much does it need to gain to break even?
A) 20%
B) 25%
C) 30%
D) 40%
Answer:
✅ B) 25%
A 20% loss needs a 25% gain to get back to even—losses and gains aren’t symmetrical, and the bigger the drop, the harder the climb.
$100,000 down 20% is $80,000, and that $80,000 has to grow by 25% to reach $100,000 again. Here’s how fast the math turns against you:
| If you lose… | Gain needed just to break even |
|---|---|
| 10% | 11% |
| 20% | 25% |
| 50% | 100% |
That’s why guardrails like diversification, risk management, and guidance from a financial professional protect more than your money—they protect your time, the one thing you can’t earn back.
Protecting against big drops is the heart of a real plan—see our retirement strategies.
