“The drops may present some opportunities,” said certified financial planner Roger Ma, founder of Lifelaidout and author of “Work Your Money, Not Your Life.” “For those whose asset allocation has moved far from their original targets, they may want to adjust future purchases toward a higher percentage of stocks.”
Older investors may want to consider moving some stock funds that have over-performed and buying more fixed income investments. “As people get older and get closer to retirement, they should gradually tweak their allocations to have a larger allocation to bonds,” Seltzer said. However, if you’re investing in a target-date fund in your 401, the allocation of stocks and bonds automatically becomes less aggressive and more conservative overall as you get closer to your retirement date.“For most clients, it makes sense for them to stick with their schedule of putting money in their 401 every couple of weeks,” Ma said.
“But if you had missed just the 10 best market days during that time period, your annual returns would have dropped to roughly half, or 5.4%,” he added. “If the market is going to have a good day, then you want to be there for it — not sitting out on the sidelines.”
BETTER Nikkei 225 - 30 year chart. Anything look familiar. They were probably told to buy for the long term in 1988 as well. Still waiting to break even, only 100% to go...
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How can I protect my 401(k) from a coronavirus-driven market downturn?How can investors protect their 401(k) and other retirement savings from being depleted when they’re watching the stock market drop? All three major stock... Y’all retiring today? Didn’t think so. Collect refund from your investment manger or ask why do they still charge fees? Increase your contributions.
Source: MarketWatch - 🏆 3. / 97 Read more »
How can I protect my 401(k) from a coronavirus-driven market downturn?How can investors protect their 401(k) and other retirement savings from being depleted when they’re watching the stock market drop? All three major stock... Y’all retiring today? Didn’t think so. Collect refund from your investment manger or ask why do they still charge fees? Increase your contributions.
Source: MarketWatch - 🏆 3. / 97 Read more »