The history of the stock market is littered with examples of times when the market takes a dive downwards. However, there are a lot of reasons to believe that the latest market dive is one of the more extreme that most people have ever seen. Thus, it makes all the sense in the world that a lot of investors are on edge or nervous about market conditions right now.
The Search For Alternatives
No one likes to lose money, and it is particularly painful when it comes as suddenly as the most recent market crash came. Thus, many investors have been on a search for alternatives to the kinds of investments that they have traditionally been in. Stocks may seem a little risky to some people at the moment.
The problem with searching for alternative investments is that they can be either far too risky or don’t have enough risk attached to them at all. It can be difficult to find a balance between risk and return.
Young People May Not Need Not Worry Too Much
The reality of the stock market for younger people is that they have a longer time horizon for investing. Markets tend to have positive results over the long run. Those who don’t have to tap into their retirement savings for a very long time might want to view market dips such as this one as buying opportunities.
Those who are closer to needing the retirement money can indeed be hit hard by market swings like this one. It can be unsettling for them. Those individuals find themselves in a position where they might want to consider moving to investments that are less risky.
Working Later Into Retirement
A lot of people who are eligible to collect Social Security are putting off collecting their benefits for a while. It is estimated that you can add about eight percent to your annual salary for every one year that you delay collecting benefits. Thus, there are advantages for those who can afford to continue working. Additionally, many people make the choice to take on at least part time work while they are in or near retirement as a way of making some ends meet there as well. That can be another way for some people to address their concerns with the current economic situation.
Times Are Scary, But We Have Seen It Before
Times like this are indeed scary in the stock market, but we have seen things like this before. There are always ups and downs in the markets, but it’s wise to remember what your investing goals are and to make sure that you have a plan.
We are here to help you navigate through these times. Contact us, today.
|Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance is no guarantee of future results. Please note that individual situations can vary. Therefore, the information presented here should only be relied upon when coordinated with individual professional advice.|