My wife and I recently ran into some friends of ours at a restaurant. As we visited, the conversation inevitably turned towards money (which I don’t mind one bit) and the fact that a stock broker was trying to earn their business. As a selling point, he suggested that now was a good time to buy because the market is in a “down turn”.
Now, I am all for buying low. Just like everything else, you want to buy into the market when it is on sale, but this just goes to show that the way the stock market is reflected in the news and other media outlets is way off base.
If the market is down, it will make headline news, but you don’t usually hear much about it when all is well and climbing.
You may not have heard it much on the news, but both the Dow Jones and S&P 500 set new record highs yesterday. The S&P 500 is up a little over 9% so far for the year. If we had a “downturn”, it sure didn’t last long. But if it did, so what? The market fluctuates. Is has ups and it has downs.
The market recession of 2007 is still very fresh in a lot of “investor’s” minds. It is usually talked about as a time in which “we lost everything”. This saddens me greatly, because a bad experience or bad advice can taint one’s view of your most powerful investment options.
So who can you trust? What should you do?
I like to borrow from Dave Ramsey’s K.I.S.S rule when it comes to investing. Keep It Simple Stupid.
Don’t simply buy a product because a salesman (stock broker or insurance agent) suggests it. A good agent or broker is one who will teach you about investing and explain to you your options and the pros and cons of them.
Secondly, do your due research. Find good mutual funds that have a proven track record of good management and rate of return over the long haul. Also look at the fees involved with the fund. I recently made a purchase into a fund that has been around since 1967 and has averaged 12.45% increase per year with lower than average fund management fees. Good investments exist and they are worth finding.
Lastly, when the market is way down and panic is running wild, is never a good time to sell. You will only “lose everything” if you sell. Rather than selling at those times, find some extra cash to buy in when everything is on sale. This way you profit from the gains when it soars.
You may not have heard it much on the news, but both the Dow Jones and S&P 500 set new record highs yesterday. The S&P 500 is up a little over 9% so far for the year. If we had a downturn, it didn’t last long.
Don’t let the unknown keep you from proper retirement planning. If you would like contact information for a financial planner that both myself and Dave Ramsey endorse, I can direct you to one.
If you are not seeing good gains in your 401k or retirement account and would like a free review of your portfolio investments, send me your contact information and we can schedule a time to look it over.
My name is Tim Parady and I am 36 years old. I was born in Connecticut, raised in Virginia, had a brief layover in Kansas which led me to Texas where I met my wife and best friend. We just celebrated 145years of marriage.
I have the best job in the world, which is to improve peoples lives. I teach people how to win in all areas of there money, which affects all areas of their lives.
78% of Americans live paycheck to paycheck, with no money in the bank and little knowledge of how to invest for their retirement. You can have a different future. You can win with money and I can show you how.
I am an independent Dave Ramsey Financial Coach,and Insurance Agent at Alkali Insurance and I am here to serve you. My goal is to provide knowledge and tools to change your life. To schedule an appointment to address your financial needs and goals, email me at email@example.com