Today’s fear of the average investor with a 401K, 457 or
other work place retirement account has money sitting on the sidelines.
At today’s interest
rates leaving money in a savings account or the savings part of the retirement
account will not create enough interest to allow money to be made for a financially
good retirement.
The individual needs an understanding of how
the stock market works and what you can do to create profits and limit loses. I
suggest reading books.
An easy read book
with lots of good information is “The Truth about Money” The 4th edition
by Ric Edelman. You can get the book as a paperback or download to your reader.
One of the reasons
that people fear putting risk into the market, is because of the pull-backs the
market has from time to time (corrections which are normal).
Without risk, your
portfolio will not grow, and that is what savings is. Savings is a place to
keep your money, but a place where the value of your money will not increase.
Similar to putting your money into your mattress.
Currently there is a
little too much uncertainty in the market. What will Greece
and Europe do? Who will be our President, and how will
that person run the country, and a big issue, what will happen to health care
(ObamaCare).
Talk about a “risk on trade” or a “risk off
trade” by those on the radio, TV, and internet makes people fearful about the
future. The fear comes from a lack of understanding about the market. In the short term (days, months) things can
look good and bad depending on the news we get. But investing is about the long
term (years).
Over years, the
little bumps along the way have very little effect or no effect on our
investment. Quality stocks continue to rise creating greater wealth for
investors. Buying stocks that pay dividends…(dividends is like getting paid
interest) while you wait for the stock value to rise is how to create wealth in
today’s choppy market.
Stay invested in
quality stocks or Funds that have stocks paying dividends within the fund to
create wealth.
I’ll blog more about
where to get the information you need, but in the meantime stay invested.
Posts
I never saw fear like that in 2008 and 2009.
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