Answers to the 2026 Investor IQ Test.

Photo of Natalie Pace by Marie Commiskey. In Powerscourt, Ireland.

Answers to the 2026 Investor IQ Test. by Natalie Pace.
 
If you score 21 correct answers or higher in our 2026 Investor IQ Test, then you’re in great shape! If you score 18, then you are C-level. Below 18 correct indicates that you are in real need of a basic course in life math.
 
Even Ph.D.s and math geniuses might not know life math… We have a lot of well-educated professionals and financial executives who attend our retreats! As Nobel Prize winning economist Gary S. Becker wrote in the Preface to my 1st book, “"Many people, including educated men and women, often get into trouble when they neglect to follow simple and fundamental rules of the type provided [by Natalie]. This is why I recommend them with enthusiasm." So, consider joining us at our next Investor Educational Retreat. There you will learn the time-proven budgeting and investing strategies that will save you thousands annually, earn money while you sleep, activate a much richer life, and lead to generational wealth. The sooner you get this information, the faster your life transforms.
 
Our time-proven 21st Century strategies are enthusiastically recommended by Gary Becker, former TD AMERITRADE chairman and CEO Joe Moglia, MacArthur Genius Award winning economist Kevin Murphy and thousands of Main Street investors. Over 120,000 people have downloaded The ABCs of Money. These tools earned gains in the Great Recession and the Dot Com Recession and outperformed the bull markets in between. Best of all, this system is as easy as a pie chart. Email [email protected] or call 310-430-2397, if you’d like to see more testimonials, if you have questions, or if you’d like to register to attend one of our online courses.
 
1. What are the most important questions you should ask your Certified Financial Advisor before hiring him/her?

"How much of my portfolio should I keep safe?" This question will help you to determine whether you are dealing with a trusted professional who is looking after your best interest, or a salesman who is looking to make a quick buck. The industry standard answer to this question is, "A percentage equal to your age.” As stocks are trading at elevated prices and bonds are carrying duration and credit risk, which can make them illiquid and earn immediate paper losses, it would be even better if s/he adds, “But given elevated equity valuations and leverage concerns, we might consider overweighting into safety."

If they just sidestep this question and redirect you to a risk tolerance questionnaire, that is a red flag. If they tell you not to worry because things always work out in the end, that it a sure sign that you are adopting a Buy & Hope plan, which wipes investors out in recessions – something that is never ideal, but can be devastating as we get closer to retirement. If stoking fear is their angle, then you might be sold into one of the products that pays them the highest commission – annuities – which isn’t as safe as you’re being told, typically underperforms both stocks and bonds, and takes away your access to almost 10% of your own money for up to a decade.

One more important thing. Since many long-term bonds lost more than stocks in 2022 and have continued to be underwater and illiquid, we need to know what’s safe in a Debt World, rather than just rely upon target date retirement funds, bonds, annuities or money market funds. Many of these purported “safe havens” are highly leveraged, subject to credit risk, vulnerable to capital loss, underperform and can be illiquid to boot. Many bond and target date retirement funds lost money over the last few years, while the S&P500 scored 88.11% total return over the last three years (23.01% annualized). You might think that there aren’t any areas of safety. However, our safe strategies doubled between 2009 and 2017. Since then, those using our tools have no paper losses with a competitive income coming in.

Now is the time to clearly know exactly what we own and why. You can learn more about our 2026 Bond Strategy in my blog. Receive access to a recording of our Bond Masterclass when you register for our Financial Freedom Retreat by Valentine’s Day. Email [email protected]. Be sure to ask for your Bond Masterclass gift when registering.

Consider getting an unbiased 2nd opinion on your current wealth plan, if you’re unsure just how safe, protected, hot and diversified you are. With stocks at an all-time high, you would be capturing gains at an ideal time. Call 310-430-2397 or email [email protected] for pricing and details.  

2. What are 4 red flags that your financial plan is at greater risk of losses than you are being told?
 
Is your portfolio performing on par with the S&P500? How do you know? Many statements compare your returns to the index. If your statement doesn’t, ask your broker-salesman for a chart of your portfolio compared to the S&P500 for the past five and 20 years. (You want to see if it just shadows the index, and how vulnerable you are to downturns.) Most managed plans perform about 2% under, due to fees. Are you paying thousands annually for lackluster or mediocre performance? Managed plans typically charge 0.5 – 1.5% annually. ($5,000-$15,000/year per million dollars.)

• 2021 was a super performer for stocks. In 2022, Long-term government bonds (-26%) lost even more than stocks (-19.44%). Bitcoin, Tesla and many technology companies lost up to -67% that year. 2023, 2024 and 2025 were gangbuster years for equities. Over the last five years, conservative portfolios missed out on the stock performance, and might have lost value, due to the weakness in bonds. Buy & Hold investors typically lose half or more in recessions and then take years to crawl back to even. It took the NASDAQ Composite Index 15 years to recover from the -78% losses of the Dot Com Recession.

Do you have 18 or more pages of holdings?

• If you have more than just a few pages of holdings in your financial plan, your gains might be negatively impacted by fees and commissions. You are not as diversified as you believe, as pages and pages of holdings can still just be the same type of holdings over and over again. You’re likely more at risk than you know, even if you’ve been assured that you are well-protected and diversified.

Do you have paper losses?

• Paper losses are far more problematic than we’re being told. In theory, you can hold a bond to term – providing the company doesn’t have to restructure their debt (at which point you may have more real losses than what you’re seeing on paper right now). Also, have you looked at the term? Many long-term bonds have a payback date that is longer than our personal expiration date. Are you going to live another 55 years?

Are you investing in last century companies?

• If your returns over the last decade are lagging the S&P500, your plan should be reviewed to understand why this is the case. The Dow Jones Industrial Average performed at half the speed in 2024, and both indices were far below the performance of the Magnificent 7 companies over the last three years. (Something you’ll learn more about in my books and Financial Freedom Retreats.) https://www.nataliepace.com/#/

3. How much of your nest egg should you keep safe?

A percentage equal to your age. Consider overweighting more into safety when assets are overpriced, the economy is weak, or you are nervous. Again, in today’s Debt World, it is important to know what’s safe. (Our safe side isn’t supposed to lose money – not even “paper losses.”) Money market funds can have liquidity fees, are vulnerable to capital loss and investor runs (especially in corrections and recessions) and are not FDIC-insured. Annuities are more vulnerable than most investors know because insurance companies are carrying a great deal of risk and leverage, can have hidden fees and terms that mute performance, and annuities are not federally insured. Most of the annuities that I see in my private coaching have dismal performance – often just 2% annualized! Additionally, you lose up to 9% of your money when you purchase the annuity! (So much for the sales pitch that you can’t lose.)  

4. What's safe?

In 2026, it’s still quite important to keep the terms short and the creditworthiness high. It’s not difficult to do this, but it is tricky, particularly since over half of the S&P500 is at or near junk bond status. Rolling, short-term maturity dates ensure that we have access and liquidity in case another investment opportunity arises and protects us from duration risk. Read the fine print. Be cautious about extending duration beyond a few years. Factor in the credit risk. We discuss specific areas of opportunity in the annual Bond Masterclass.

Hard assets will hold their value better than paper assets in a Debt World. So, the mantra “safe, income-producing hard assets that you purchase for a good price” is another good option. Real estate is at an all-time high in the U.S., so it will likely be difficult to purchase for a good price in 2026, unless we are looking into a 3-generation family plan (which is a great idea). There are some hard assets that offer the best ROI by reducing our monthly expenses (for life), which we cover at the Financial Freedom Retreat, and in our blogs and videoconferences. There will be a Real Estate masterclass in June.

You don’t want to be all in on hard assets because you also need liquidity and cash flow. You don’t want paper losses because they reduce your net worth and FICO score, and you might actually need that money.

We spend one full day on What’s Safe at the Investor Educational Retreats. Educate yourself now on the best income-producing assets that are right for you, so that when prices are more attractive, you know what you want and have the means to take action and close the deal. Call 310-430-2397 to learn more.

Everyone is hoping that interest rates will go down in 2026 and 2027. However, the landscape has gotten a little trickier, as the long-term projection for the Fed Fund rate is 3.1%. Mortgage rates are expected to remain 6.0-6.5% in 2026 and 2027, according to the Mortgage Bankers Association (as of 1.28.2026).

5. What is the average return of stocks over the last 10 and 30 years?

Large cap stocks earned 14.82% annualized over the last decade and 10.35% over the 30-year period (source: Morningstar). Small cap stocks performed at 9.62% and 8.55%, respectively.

6. What is the average return of gold over the last 10 and 30 years?

Gold returned 14.03% annualized over the 10-year period and 7.09% over the last 30 years. Gold hit an all-time high in 2011 and then spent a decade down by -37%. Mining stocks doubled in 2016, were flat in 2017, and doubled (again) off their 2018 lows by August 2020. The RING iShares ETF was in the doldrums between 2021 and 2024 and then tripled in 2025, for a high of $98 on Jan. 23, 2026. Regular rebalancing (1-3 times a year) prompts us to capture gains at the high and buy in at the low, rather than ride the rollercoaster.
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The all-time high for gold of $5,586.20 was hit on Jan. 29, 2026. Even with the pullback, gold was one of the best performers of 2025. What was even hotter? Silver, which soared from $29.24 to a high of $121.79 on Jan. 29, 2026. Even with a pullback of -36.85% from the high, the iShares silver ETF (SLV) is still up 142% year over year. Volatility occurs in super performers, including the Magnificent 7, which is why rebalancing 1-3 times a year to capture gains is so important.

7. What is the average return of real estate over the last 10 and 30 years?

Real estate returned 5.81% annualized over the 10-year period and 8.38% annualized over the 30-year period. Since mortgage rates doubled in 2022 and have yet to return to the pandemic lows, many Boomers and other homeowners who locked in ultra-low, fixed interest rates can’t afford to move. The market is frozen, with too little supply, unaffordable prices and buyers who can’t qualify for a mortgage. Even during the pandemic boom, we were warning that unaffordable prices could become a problem for new homeowners. Over the past few years, we’ve reported repeatedly on the rampant buyer’s remorse.

Remember, you can only build equity when prices increase. In a recession, home values can plunge. If we’ve got a good cushion of equity, then we should be okay. If we don’t and our home value sinks beneath our mortgage, this can cause a lot of problems that will dog us for years. There were devastating losses during the Great Recession, when over 20 million homes were foreclosed on.

Housing is largely unaffordable. According to AttomData, average income-earners would have to spend more than 28% of their income to buy a home. 3.0% of U.S. homes are seriously underwater on their mortgage, 2.6 million – even with prices near an all-time high. (This is largely due to loan mods.)

If you don’t buy high, buying a home you can afford can be one of the best ways to build wealth. Homeowners are significantly wealthier than renters. So, homeownership is something to aspire to. However, it must be done right. It’s a good idea to own in an area that we plan to live in for a decade or more.

There is nothing worse than buying high in real estate and watching the value of your home sink below the amount that you owe on it! It can ruin your life and FICO score for years. Be sure to read the Real Estate section of the 6th edition of The ABCs of Money. There are at least seven real-world case studies featured there to inform your real estate decisions. We offer time-proven, out-of-the-box, real estate solutions in our master classes and private coaching. Email [email protected] for additional information. There is always a way to move toward our goals in a prudent manner. In fact, the best opportunity could be lying in plain sight. Join us for our Real Estate Masterclass in June!

8. What was the top performing investment in 2025?

The iShares Silver Trust started 2025 in the $26/share price range and then rocketed up to $70.60 by Dec. 31, 2025, for gains of 172%. By Jan. 29, 2026, the ETF was soaring to heights never seen before – at $121.79/ounce. It was back to $70/share on Feb. 6, 2026.

It’s human nature to see that kind of dip and think that you’ve “lost money,” when in fact, even with the dip, you’ve more than doubled your ROI. Here is how rebalancing, using our pie chart system helps us – by putting everything in proper perspective and prompting us to do the right thing (capture gains). Rather than get stuck in paralysis by over-analysis, rebalancing at an all-time high (leaving an age-appropriate, diversified amount on the table, but keeping a lot of the gains) helps us to keep growing our wealth. The system itself reminds us to capture gains at the high and purchase more at the low, rather than boasting or complaining about the price fluctuations, without capitalizing on them.

Large stocks performed quite well, with gains of 17.88% (source: Morningstar Direct). Most of those gains were concentrated in the Magnificent 7. Without their help, the S&P500 would have only earned 10.4%. The Dow Jones Industrial Average performed well below the S&P500, with gains of 12.97% in 2025.

Even with high interest rates, real estate housing prices gained 3.78% in 2025. Long-term government bonds posted a gain of 5.6% but are still underwater after losses of -6.41% in 2024 and -26.08% in 2022.

9. How long will it take for you to have a nest egg as big as your annual salary if you put 10% of your income into a tax-protected (and financial predator proof) individual retirement plan and invest in stocks and bonds*?

7 ½ years. This is based upon 10% average annualized returns of stocks and bonds over a 30-year period, which is what happens in a normal economy. Stocks have been on fire – more than double that ROI over the past three years. Our hot slices have been superstars, including silver (+128%), Peru doubling and even clean energy up 60% in 2025. Admittedly, it will be difficult to earn more than 3.5% in fixed income safely in 2026. However, who leaned into real estate instead, as we encouraged between 2009 and 2016, doubled their money. There will always be opportunities for investors with the liquidity to capitalize on them.

10. How long will it take for your nest egg to earn more than you earn, if you put 10% of your income into a tax-protected (and financial predator proof) individual retirement plan and invest in stocks and bonds*?

25 years. This is based upon 10% average annualized returns of stocks and bonds over a 30-year period, which is what happens in a normal economy.
11. What’s the safest investment in a slow-growth, high-debt world?

Short-term, creditworthy bonds are offering a yield of 3.5%. Avoiding paper losses and illiquidity is tricky. If you’ve asked for a conservative portfolio, you might be more at risk than you realize, unless you know what you own and why and are not just having blind faith that someone else is protecting you. We must know the loopholes (many) of our safe investments and read the fine print. Some CDs are not FDIC-insured, and many brokerages claim that their cash is FDIC-insured, but there is a big disclaimer in the lengthy legalese. Uninsured deposits are not safe. Read the blogs below for additional information.

Is Your FDIC-Insured Cash Really Safe?

Money Market Funds, SIPC and FDIC. What’s the Difference?

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Hard assets hold their value better than paper assets when there is too much paper floating around (debt, like there is today). So, if you have an equity-rich home or income-producing assets with equity, think twice (and consider private coaching) before turning your hard asset into paper money – even if you’re ready to downsize. (There are great solutions that can address whatever it is that you want to achieve.) Rich people who have kept their wealth for centuries have a family wealth plan that includes three generations (at least). At the same time, being real estate rich and cash poor can make us vulnerable, as we still need to pay our bills. The safe side has opportunity and money pits, which is why we spend one full day on this topic at our Investor Educational Retreats. We also host Bond (What’s Safe) and Real Estate Master Classes each year. Email [email protected] if you’re interested in learning more.

Many hard assets are overpriced right now. If you are equity-rich, you still want to do the analysis to make sure that will remain the case if real estate asset prices decline significantly in value, as they did in the Great Recession. Be sure to read the Real Estate section of the 6th edition of The ABCs of Money.

In addition to looking for some return on the safe side, think capital preservation. Liquidity will allow us to buy low when things are on sale. Most people don’t buy low because they can’t. They lose too much money in corrections and then have no ability to buy when bargains abound.

12. Which countries hold the most gold? 

The United States is the top holder of gold worldwide, by far, with 8,133.5 tons, followed by all ETFs, Germany, the International Monetary Fund, Italy, France, Russia and China. China and Russia have been on a gold buying spree since 2008. Russia sold a little gold over the last six months. India increased their gold holdings. Russia and China have been trading oil and other commodities using the yuan since 2023, in an effort to break free from the dollar hegemony. BRICS (Brazil, Russia, India, China and South Africa) nations have not yet launched their own unified currency. However, these countries are interested in having a way to trade with one another without the dollar or the SWIFT network.

​13. Are annuities safe? Do they really protect us from losses?

Annuities are one of the few investments where we lose up to 9% the moment we purchase them. (They call them surrender fees. Many investors are not fully aware of these fees when they buy the products.) Many of the annuities I’ve been looking at are offering 2% annualized return – lower than CDs – without the FDIC protection. Insurance products, including life insurance and annuities, aren't insured by the FDIC. (The FDIC covers banks, not insurance companies or brokerages.)

If we had not bailed out AIG in 2007, more than 50 million annuity holders would have been in real trouble. Your annuity product is only as safe as the insurance company that is selling it to you. Insurance companies don’t fare well in recessions, historically. According to the Nov. 2025 Financial Stability Report, “Leverage for some other types of financial entities—such as hedge funds and life insurers—was elevated relative to historical standards. When taken together, the overall level of vulnerability due to financial-sector leverage was notable.” (While this language doesn’t sound alarming, it rather is, considering the Federal Reserve Board’s penchant to use euphemism.)

Insurance products are like being a renter. If you can’t pay, you get tossed out. Many people pay for life insurance their entire working life and then can’t pay when they retire – when they are most in need. If you put that money into your own tax-protected account, you could save on taxes, compound your gains, and it would be there for you when you retire, even offering some income, in addition to the capital (instead of disappearing, like insurance plans can do).

Billionaire Peter Thiel reportedly has over $5 billion in his Roth IRA. Regular contributions, investing and compounding gains are that powerful. When you can no longer contribute to your own retirement plan and Health Savings Account, they support you. We can be the boss of our wealth, once we learn The ABCs of Money that we all should have received in high school and college. Once we know what we own and invest in and why, we can stop making everyone else rich and start living a richer life.

14. What were the top performing and the worst months for stocks over the past five years? 

November, July, October and May performed the best over the 5-year period (in that order), on average. September, March and February were negative months.

Retreat Attendees receive charts of the top-performing months and election year trends. If you’re interested in learning more about our 3-day, life transformational investor educational retreats, call 310-430-2397 or email [email protected].

15. What was the top performing season for stocks over the past twenty years? 

October through December – the Santa Rally – performed the best over the 20-year period, but saw greater volatility than normal, particularly in October and December. December 2018 was the worst performing December in history, with losses of -9.2%. The Spring Rally (March and April) were also stronger seasonally than most of the other months over the 20-year period. However, March was weak over the last 5-10 years, particularly with the pandemic plunge of 2020.

Understanding seasonal trends can help us with our annual rebalancing in our nest egg, and with our selling strategy for trading. We just hosted a Rebalancing Master Class a few weeks ago. (Gain access when you purchase a 12-month all-access pass to all our online courses.) Regular rebalancing is a very important part of our nest egg strategy. We spend one full day on what’s hot, teaching how to identify the best investments of the year, in our Investor Educational Retreats.

16. What was the worst investment in 2025, NASDAQ, gold, the Dow Jones Industrial Average, bonds, cannabis, oil or real estate?
Oil ended the year at $57.42/barrel – prices that help consumers at the gas pump but are below break even for new drilling projects. Oil prices were down -20% at the end of 2025 from where they started the year. (We’ve been warning about poor oil performance for a couple of years, as demand softens with the boom of electric vehicles, particularly in China.) Bitcoin lost -6.7% in 2025. Will 2026 bring in a Crypto Winter? (Check out my blog.)

Stay tuned into my blogs and videoconferences for ongoing news, analysis and vital investor information on how 2026 is expected to shape up. Check out my Crystal Ball 2026 videoconference and blog. Email [email protected] with VIDEOCON in the subject line to receive the logon information for the next monthly videoconference.
 
17. Which year is expected to perform better, 2026 or 2027, based upon historical returns of election years?

2026 is a mid-term year. Midterm years (2026) don’t do as well, with -12.84% losses over the 10-year period. 2022 really skewed the midterm results, with losses of -19.445 on the year. However, 2018 was a loser, too (-6.24%).

Over the last decade, pre-election years (2027) have been on fire, with average gains of 26.56%.

Analysts are predicting that the S&P500 will rise to 8,001 – up 16.9% in 2026 (source: S&P Dow Jones Indices). However, there are always risks that can obliterate economic projections. (Economists are terrible at predicting recessions.) U.S. stocks are very expensive, which could mute gain possibilities, as could slow GDP growth (predicted to be 2.3% in 2026). As you can see in the CAPE ratio below (Nobel Prize winning economist Robert Shiller’s stock valuation tool), the only time that stocks were more expensive was during the Dot Com Recession. Stocks are higher now than they were in the Great Depression.
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Having expensive stocks, unaffordable real estate, and higher interest rates than we were used to after the Great Recession, as debt soars to all-time highs and credit is still tight, has increased the volatility on Wall Street. There have been many wild rides over the past five years. This is likely to continue. Since 2009, the downturns have been short-lived, and the general trend is up. There are retail traders who have never known a recession, which is a normal part of the business cycle.

18. How many companies are in the Dow Jones Industrial Average?

30 companies. Many are household brands and have been around for over half a century, and many are carrying far more debt than the value of the company. As I mentioned previously, the DJIA is underperforming the S&P500 by a significant amount.

Leverage has begun to concern economists. Over 50% of the S&P500 corporations are at the lowest rung of investment grade or at junk bond status. This includes a lot of banks, brokerages, financial services and insurance companies. If you don’t understand how much debt corporations are holding, you can learn how to uncover and use this valuable tool to increase the performance of your nest egg on the 2nd day of the Investor Educational Retreat.
Click to access the names of the 30 companies. The Dow Jones Industrial Average was launched in 1896.

19. Which index has performed better over the last 5 years, the Dow Jones Industrial Average or the NASDAQ Composite Index?
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As you can see in the chart below, the NASDAQ has almost doubled the performance of the DJIA over the last three years, and was well above the S&P500. This has been the case since 2023. If you don’t have a large cap growth fund, your nest egg could be in the underperforming camp. We’ve been adding an extra hot slice or two of technology (specifically breakthrough technology, artificial intelligence and cybersecurity) to increase performance.

Source: MSN.com. (c) Microsoft. Used with permission.

We’ve been using value replacement funds, instead of the DJIA. Most of the time, the income is better, while also offering country diversification. (Peru is our mid cap value replacement. That fund more than doubled in 2025.)
 
A diversified wealth plan includes both value (substitutions*, rather than the DJIA) and growth (NASDAQ), as well as regular rebalancing. Using this system, investors can capture gains in artificial intelligence, the Magnificent 7, technology, silver/gold, crypto and biotechnology at the high, and buy low when recessions and other economic shocks create opportunities. Learn more at the Investor Educational Retreat and in The ABCs of Money.
 
*We are leaning into country diversification in our value funds, due to the leverage and slow growth in the DJIA. I’ve posted blogs recently on some of our favorite countries. Email [email protected], if you’d like information and links to those blogs.
 
20. How much did investors lose between February 19, 2020 and March 23, 2020? Why is this important, if 2020 ended up being a great year for stocks?
 
Both the Dow Jones Industrial Average and the NASDAQ Composite Index dropped 35% in just one month. Some of the hottest stocks, including Nvidia (-38%), lost even more. However, once the government injected over $4 trillion into the economy, technology stocks surged, particularly since everyone was working and doing everything from home.
 
2020 gained 16.26%, with 2021 scoring 26.89% gains in the S&P500. And then we saw 2022, where many of the gains were wiped out. This is another poster for capturing gains and rebalancing, instead of just buying and hoping or letting it ride.

21. How much did investors lose during the Great Recession and the Dot Com Recession?

As I mentioned above, the Dow Jones Industrial Average lost 55% in the Great Recession. (A million dollars plunged to a value of just $450,000!) The Dot Com Recession saw a drop in the NASDAQ Composite Index of up to 78%. (A million dollars dropped to just $220,000!) It took the NASDAQ 15 years to crawl back to even. The DJIA didn’t return to the highs of Oct. of 2007 until late 2013.  

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Source: Morningstar.com. © 2020. Used with permission.

Source: Morningstar.com. © 2020. Used with permission.

We can’t afford to lose more than half and then take 6-15 years to crawl back to even – particularly if you are over the age of 50. It’s time to step off of the Wall Street Rollercoaster and into time-proven, easy systems that protect our wealth, while outperforming the major indices. These strategies cost less time and money, and allow us to sleep better at night, knowing that our wealth is protected.

22. Does Buy & Hope work? If not, what does?
Buy & Hope lost more than half in 2000 and 2008 and 35% (or more) between February and March of 2020. Losing more than half of our wealth impacts everything in our lives, from our ability to borrow money, to our FICO score and everything in between. What’s worse, we then spend a great deal of the bull market crawling back to even, rather than building wealth.

Our easy-as-a-pie-chart nest egg strategies with regular rebalancing earned gains in the Dot Com and Great Recessions and have outperformed the bull markets in between. Working off of the pie charts, instead of the brokerage statement, allows us to take the emotions out of the plan, and rely, instead, upon a time-proven system. This pie chart system, with annual rebalancing, is a buy low, sell high plan on auto-pilot – prompting us to do what we should be doing at each rebalancing session.
 
Email [email protected] or call 310-430-2397, if you’d like to customize your own sample pie chart using our free web apps, or receive an unbiased 2nd opinion through our private coaching program. (We teach you how to do this yourself at the Financial Freedom Retreat and at the Rebalancing Master Class.)

23. Why is it that so many investors are unable to Buy Low and Sell High?

Buy low, sell high is a mantra that everyone knows. So, why do so few investors do it?
 
There are a few reasons…

• Most people don’t buy low because they can’t. When we ride the Wall Street rollercoaster or buy real estate high, the only option available to us after we’ve lost a substantial amount of money is to ride out the downturn and pray that we crawl back to even. Enlightened investors who have a time-proven plan, who have preserved their capital and are properly diversified, are in a great seat to buy low when the opportunity presents itself because they have liquidity. They haven’t lost everything in the  downturn. The reason that there are so many opportunities in tough times is that there are so few qualified and able buyers.
• Buy & Hope products, such as target date retirement funds and mutual funds, ride the Wall Street rollercoaster, often underperform the basic indices and require us to ride out downturns, rather than buying low. These products discourage selling at all. It’s difficult to sell high because when you have a fund that includes everything and the kitchen sink, it’s impossible to see which gains to capture.
• Buy low, sell high is easy to say and hard to do. When stocks drop, the average person believes they’ve made a “bad investment” and are tempted to sell low. When stocks are high, like U.S. equities are today, investors want to jump in and buy more. In other words, stomach acid, FOMO, YOLO, HODL, FUD, lack of due diligence, insufficient financial literacy, last-century strategies and emotions work against the time-proven mantra.

24. What is the 3-Ingredient Recipe for Cooking up Profits? 

1. Start with what you know and love
2. Pick the Leader
3. Buy low; sell high (easy to say; hard to do)

This recipe, along with my Stock Report Card, Four Questions, market strategies and data drilling, is how I earned the ranking of number one stock picker. The recipe is easy. Learning how to use these tools requires practice. You must begin by locating and analyzing data, which takes less time and is far more informative than reading blogs, which have a fraction of the information and might be written by a novice. Come to our next Financial Freedom Educational Retreat to learn firsthand how easy and effective due diligence is, and how it can supercharge our returns. Call 310-430-2397 or email [email protected] to learn more.
If you don’t like stock picking, no problem. Our easy-as-a-pie-chart nest egg strategy is designed for money while you sleep. Once you set up your financial house properly, you’ll just need to Spring Clean it once or twice a year. No trading is necessary.

25. What are the Four Questions for Picking Winning Stocks?

The Four Questions for Picking Winning Stocks.

1. What’s the product?
2. Who’s the customer?
3.  Can the company continue to make a superior product going forward and get it to their customer at the best price before the competition?
4. Who’s the CEO and can s/he motivate the employees to make the best product faster, better and cheaper than the competition?

As you can see, three out of four questions can be answered by being a good customer of the company. The 3rd question will benefit from you completing a Stock Report Card and understanding how to use the data (something we teach on Day 2 of our Financial Freedom Retreat). So, the more you know about a company (ingredient #1 of the recipe for Cooking Up Profits), the easier it is to pick the leader.

In Put Your Money Where Your Heart Is, I used these questions and tools to compare two companies. Google scored an A (in 2006, when it had only been publicly traded for 2 years). The Dow Component that I gave a D- to went on to declare bankruptcy a few years after this prediction was made (General Motors). Using the Stock Report Card and 4 Questions, I identified both of these trends years before these major events occurred. The book was written in 2006, three years before GM went bankrupt. In fact, I applauded Google on national television before its IPO, when most pundits pooh-poohed it. 

This is the power of asking the right questions and relying upon the data, rather than just listening to the mainstream media. (We also warned about General Electric years before it was booted from the DJIA and cut its dividend. This was also evident in the data, but not in the headlines)


26. How many Dow Jones Industrial Average companies were bailed out or went bankrupt in the Great Recession?

Most people don't realize that 20% of the companies of the DJIA (6 companies: AIG, American Express, Bank of America, Citi, JP Morgan and General Motors) were bailed out or went bankrupt in the Great Recession. Others, like General Electric, received support. The DJIA was the leading bailout index in 2008.

Learn more about how to add in performance and avoid the bailouts in your funds and retirement account at the Financial Freedom Educational Retreat and in The ABCs of Money. Due to debt and leverage, it is important to remember that the higher the dividend is, the higher the risk likely is (read the chapter of the same name in The ABCs of Money for additional information). GE investors learned this the hard way in 2017. Many REIT investors are learning it now, particularly those invested in commercial real estate.

Bottom Line
So, are you an Einstein in investing? A complete novice?
 
If you scored 21 correct answers or higher, then you’re in great shape! If you scored 18 right, then you are C-level. (Come to our next retreat to proceed up the path to financial wisdom!) Below 18 correct indicates that you are in desperate need of a basic course in life math, which will transform your life and relationship with money. Email [email protected] to start with one of our free videocoaching courses in Prosperity/Abundance, Debt Reduction, Sustainability or the Thrive Budget. Check out more of our testimonials in the retreat flyer.
 
Call 310-430-2397 or email [email protected] to learn more.
 
The High Cost of Free Advice
A few years ago, our team was told yet another story about someone who lost a substantial amount of money by trusting the "free" advice of a financial advisor. Learn the truth about commissions & conflicts of interest & how to get a 2nd opinion now in the guest blog “They Trusted Him. Now He Doesn’t Return Phone Calls.” Know what you own. Protect your future now!
 
 
Data Sources:
(c) 2026 Morningstar Direct, S&P Dow Jones Indices, the World Gold Council and The National Association of Realtors. All rights reserved. Used with permission. The information contained herein: (1) is proprietary; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar, the National Association of Realtors, the World Gold Council, Natalie Pace, nor any content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
 

Are you aware that the hot funds we've been featuring in our sample pie charts and retreats performed at the top of Wall Street in 2025? Silver tripled. Peru (copper) was on fire with over 100% gains. Even clean energy scored 55%... 

Why not treat yourself to the gift of financial freedom to create a New Year, New Me in 2026?
Register now to join us at our online Financial Freedom Retreat April 24-26, 2026 where you'll learn how to protect your wealth, save thousands annually in your budget, invest in hot industries like AI, gold, crypto and more, and how to be in the best seat during our volatile Debt World. Register by Feb. 28, 2025 to receive the best price. (Ask for access to a recording of our Bond or Rebalancing masterclass as our gift to you, when you register by Valentine's Day.) Email [email protected] to learn more and register now.

If you'd like a life-changing adventure of a lifetime, be our guest at a royal manor house in Cornwall, England, March 12-19, 2027. (With just eight rooms available, this exclusive, private, bucket-list adventure sells out a year in advance!) Call 310-430-2397 or email [email protected] to learn more. The 2025 Restormel Retreat was a magical and royal experience. Click to learn more. 

Request testimonials at [email protected]. You can also view some on the flyer page of the retreat. 

Learn how to:

* Invest in hot industries, such as cryptocurrency, Nvidia, artificial intelligence, and quantum computing,
* Save thousands annually with smarter big-ticket choices
* Hedge against a weaker dollar,
* Invest and compound your gains,
* Green your retirement plan,
* Easy and efficacious nest egg strategies,
* Get hot and diversified (including in artificial intelligence, quantum computing and crypto),
* Evaluate stocks,
* Avoid capital gains and financial predators,
* Keep an age-appropriate amount safe, and,
* Know what's safe in a Debt World.

Yes, it's a complete money makeover. 
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Email [email protected] or call 310-430-2397 to learn more and register. Learn the 15+ things you'll master and read testimonials in the flyer on the home page at NataliePace.com. ​

"Ten minutes into the first day I was already much smarter about investing than I ever thought I would be in my life and I knew I was in exactly the right place at this retreat. I am amazed at how EASY and FUN it is to make my money work for me and those I love. I think this kind of information should be compulsory in schools. I wish I'd learned this sooner." CM
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"Many people, including educated men and women, often get into trouble when they 
neglect to follow simple and fundamental rules of the type provided [by Natalie]. 
This is why I recommend them with enthusiasm." 
Professor Gary S. Becker. Dr. Becker won the 1992 Nobel Prize in economics for his theories on human capital

"College students need this information before they get their first credit card. Young adults need it before they buy their first home. Empty nesters can use the information to downsize to a sustainable lifestyle, before they get into trouble." 
Joe Moglia, former Chairman & CEO, TD AMERITRADE.


If you’d like an unbiased 2nd opinion on your current wealth plan, email [email protected] for pricing and information.

Click through to the flyer to learn more. Call 310-430-2397 or email [email protected] for pricing, additional information and to register. Register by Feb. 28, 2026 to receive the best price. Teens and college students can attend for just $99.

Join us for our Restormel Royal Immersive Adventure Retreat. Spring Equinox 2027. Email [email protected] to learn more. Click for testimonials, pricing, hours & details. Register now to receive the best price, the best room and four private, prosperity coaching sessions. There are only 6 rooms available. This retreat includes an all-access pass to all of our online training for a full year for two. Considering the perks, you're receiving a 65% discount to learn the life math that we all should have received in high school, and the room is free! Email [email protected] to learn more. The best rooms at the 2025 retreat were sold out in 2024! Yes, it's a great idea to register and start transforming our lives now.

Natalie Wynne Pace is an Advocate for Sustainability Financial Literacy & Women's Empowerment. Natalie is the bestselling author of The ABCs of Money (6th edition) and The Power of 8 Billion: It's Up to Us, and is the co-creator of the Earth Gratitude Project. She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). Her book The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical), with over 120,000 downloads and a mean 5-star ranking. The 6th edition of The ABCs of Money and the 2nd edition of The ABCs of Money for College are the most recent releases of these books. Follow her on Instagram. 
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Natalie Pace's easy as a pie chart nest egg strategies earned gains in the last two recessions and have outperformed the bull markets in between. That is why her Investor Educational Retreats, books and private coaching are enthusiastically recommended by Nobel Prize winning economist Gary S. Becker, TD AMERITRADE chairman Joe Moglia, Kay Koplovitz and many Main Street investors who have transformed their lives using her Thrive Budget and investing strategies. Click to view a video testimonial from Nilo Bolden.​​

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Check out Natalie Pace's Substack podcast and watch videoconferences and webinars on Youtube.

Other Blogs of Interest
Finding Harmony: A King's Vision. Half a Century of Sustainability Leadership.
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2026 Rebalancing IQ Test.
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Magnificent 7 Update. On Fire. Expensive. 
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Coke & Pepsi Suffer From Poor Fiscal Health. 
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Wealth Hacks: Are You Getting Killed in Capital Gains Taxes? 
Our Super Performing Hots and Value Replacements.
Is Your Income Strategy Losing Money?
Gold and Silver Soar. 
Get Safe & Hot in 1 Easy Plan. 
Home Prices Soften. Is Your City Next?
Tesla Vision vs. Waymo LiDAR and Air Taxis. Are Any of Them Safe?
Archer Aviation is Chosen to be the Exclusive Air Taxi Service for the 2028 L.A. Olympics. Company of the Year?
USA Downgraded. Is U.S. Reserve Currency Status Threatened?
Utilities: In the Eye of the Natural Disaster Storms. 
Aging Mom Doesn't Want to Discuss Dilapidated House. Investors Ask Natalie.
Tesla, Tariffs, Chinese Competition and Price Wars.  
Will Oil Prices Sink or Soar? Executives are Uncertain.
Health Savings Accounts. Save Thousands. Get a Tax Credit. Provide for Tomorrow's Healthcare Needs.
Restormel Manor House 2025. A Truly Royal and Magical Adventure. 
9 Ways to Cut Your Tax Bill in Half and Save Thousands Annually.
Should I Have a Money Manager?
10 Rules of Successful Investing. 
Indonesia: Rich in Nickel with Ambitions of Becoming an EV Battery Hub.
RoboTaxis. AI. The Magnificent 7. 
Canadian, Australian and U.S. Banks. Are Any of Them Safe?
Ireland. Rich in Technology, Biotechnology and Agribusiness. 
9 Money Secrets of the Ultra Wealthy.
Housing & Budgeting Solutions.
Fast Fashion. Fossil Fuels. Plastic Clothing. Atacama Desert Waste Dumps. 
Fintechs and Brokerages that Fail are Not FDIC-Insured.
Housing. Unaffordable. What Works? Case studies and creative solutions. 
The Underperforming DJIA, Full of Fossil Fuels and Forever Chemicals.
13 Lifestyle Choices to Reduce Waste, Pollution & CO2 & Save a Boatload of Dough.
11-Point Green Checklist for Schools.
10 Wealth Secrets of Billionaires and Royals.
Fiat. Crypto. Gold. BRICS. Real Estate. Alternative Investments.
BRICS Currency. Will the Dollar Become Extinct?
Is Your FDIC-Insured Cash Really Safe? 
Money Market Funds, FDIC, SIPC: Are Any of Them Safe? 


Important Disclaimers
Please note: Natalie Pace does not act or operate like a broker. She reports on financial news, and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly-traded companies, funds or projects mentioned by Natalie Pace are not intended to be buy or sell recommendations.

ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect an age-appropriate, diversified wealth plan, which has been designed strategically, with the assistance of financial professionals who are familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge, patience and diversified strategy.  
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Information has been obtained from sources believed to be reliable. However, NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument.