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%
Here’s why:
Losses and gains aren’t symmetrical.
If you have $100,000 and lose 20%, you’re down to $80,000. To get back to $100,000, that $80,000 has to grow by 25%—not 20%.
This is why market protection matters so much.
The bigger the drop, the harder it is to climb back. A 50% loss needs a 100% gain just to break even.
That’s also why having guardrails in your plan—like diversification, risk management, and guidance from a financial professional—protects more than just your money.
It protects your time, because time is the one thing you can’t get back.
