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Long Term
By Daphne | October 22, 2007
The market is scary now but…
Think long term.
Savings and investments are for the long run not short term. If you were just investing for the short term that is when you have your money in cash or cash products. The 20th anniversary of Black Monday was a sign that there were lots of people who should have stayed put in the market. This is why you diversify in your investments.
In the short term you will lose some money but it will be painful. A smart move and frugal people are smart means that you will not make any rash moves. The market has taken some smaller hits over the past year or so and has recovered. Use this time to take advantage of buying more for your investment dollar. What you have may drop but over time, you will probably gain more.
Use this advice from Marketwatch
The Black Monday anniversary coincides with the front edge of the baby boom generation qualifying for Social Security benefits. No one got to this point and said “Shoot, I could have retired today had it not been for Black Monday back in ‘87.” Few days on the market will be as memorable as Oct. 19, 1987, but even the days that inspire the most nervousness will not be remembered when it comes to counting up your nest egg after the appropriate passage of time.
In essence, there is no need to make any rash decisions or worry about an investment now when you aren’t going to need them for 10, or 20 years. If you made a wise decision when you started to invest, then you will reap the benefits in the future.
It will be painful to see your portfolio lose money but a year from now you probably won’t notice the losses. Over time with sound investments and a diversified portfolio, you will probably make gains.
Topics: October 2007 |