Make the market work for you
Every investor is different. While most investors share the same general goals (i.e., securing their futures and building for retirement), their approach to achieving those goals is as varied as the day is long.
One trait many investors currently share, however, is fear. Thanks to the up and down nature of the market, where stocks have risen and dropped dramatically on a daily basis, many people are fearful for their existing investments, and unsure as to how, or if, they should continue making those investments.
Because every investor is different, how individuals approach the market and securing their futures is largely dependent on their age. While Baby Boomers have likely taken a significant blow during the current recession and might want to consider pulling back some investments, the following strategy could be a solid approach for younger investors, who are among the most confused about what to do as the economy continues to struggle.
* Don’t be averse to responsible risk with retirement investments. As rough and tumble as the market has been since late fall 2008, younger investors with less to lose might want to consider taking risks with the market while it’s down. When investment risks pay off the reward is often great. However, this shouldn’t translate to putting all your money on the 100-1 longshot at the racetrack. Taking risks and being an aggressive investor are two different things. Being aggressive entails taking some responsible risks, and not simply risking for the sake of risking.
Fortunately, younger investors are typically the ones who can comfortably take those risks and not end up a nervous wreck. The current market is loaded with risk, but can also yield huge rewards. For younger investors, taking some responsible risks with retirement savings could prove a very prudent move when the market returns to normalcy.
* Be sure to have ample savings. Unemployment has affected every region of the country, and few people are safe from the specter of losing their job. That said, while now can be a good time to invest for younger people, with the potential for high returns if they’re willing to take risks, it’s also of paramount importance that young people save as well. Financial advisors suggest having six months salary in savings as a way to successfully make it through a potential layoff. For young singles, however, more than six months salary might be necessary in the current economy.
About Chris Elkins
- New Legion Auxiliary officers July 27, 2016
- Eastern Lights July 28, 2016
- Ellistown Breezes July 28, 2016
- Cora Sanders turns 98 July 28, 2016
- Baptist Union County selects Service First Champion July 28, 2016
- Baptist Union County’s HealthPlex transitions to new owner July 29, 2016
- Youth production to ‘dazzle’ audience this weekend with selections from Disney markings. July 28, 2016
- Martintown bridge complete, road open again July 28, 2016
- There is much we didn’t know about millionaire Paul Rainey July 28, 2016
- Young Valley to bring ‘alt-country’ sound to weekend concert series July 28, 2016
- Miranda Mora: my boss was needing CMS-40B earlier today and saw ...
- BRYNN11SCHMIDT: my family was looking for CMS-40B earlier today an...
- janifar soloman: Our experts know all the perfect way to solve your...
- GerryGorel820: I totally agree with the all questions you raised....
- PHYLLIS OPPERMAN: Savvy suggestions , I Appreciate the facts - Does ...
Subscribe to Blog via Email
- Baptist Union County’s HealthPlex transitions to new owner
- Youth production to ‘dazzle’ audience this weekend with selections from Disney markings.
- Martintown bridge complete, road open again
- There is much we didn’t know about millionaire Paul Rainey
- Young Valley to bring ‘alt-country’ sound to weekend concert series