Alfredo Rossi

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Alfredo Rossi
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Life & Events > Is it Time for Action?????????
 

Is it Time for Action?????????






After a historic drops on Wall Street, many Americans with 401(k)s and other investments may have felt unsure how they should feel about their investments.

So, is it time for action?

“If someone is investing in a 401(k), that’s long term, that’s for retirement,” said Jim Donnelly, a St. Paul, Minn.-based financial adviser affiliated with Focus Financial. “Making long-term decisions for your future financial security shouldn’t be based on the news of the day—no matter how good or how bad.”


Donnelly said he realized that the market news could shake the confidence of many people who have invested in 401(k)s, but he said now is not the time to panic, especially if you have a long window of time between now and your retirement.

He said that if you don’t have much time left until you retire, it may be worthwhile talking to a financial adviser.

Donnelly said people with a 401(k) will actually want to look closer at the Standard and Poor’s Index than the Dow. The S & P 500 is a broader measure of the market and dropped almost 25 percent more late in September than the Dow.

Donnelly said he did have a few nervous investors call him then, but urged them to look at the big picture here and cautioned that history is on the side of the investor.

“I don’t have a crystal ball as to what’s going to happen tomorrow, next week or next month, but based on history, the markets will recover and will go onto new highs, as has typically been the case with bear markets,” he explained, noting the market hit similar lows in 1987 and between 2001 and 2002 and eventually recovered strong.

“A good rule of thumb with 401(k)s is to be very-well diversified (with your allocations). This is not a time when you want all of your investment eggs in one basket.”
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posted on Nov 19, 2008 1:57 PM ()

Comments:

I am in it for the long haul. While I am basically retired already, I have many years to go before I turn 63- or 67- or whatever that magical age is!
comment by dragonflyby on Nov 20, 2008 8:16 AM ()
Sometimes I feel my cookie jar is my safest saving plan.
comment by grumpy on Nov 20, 2008 5:51 AM ()
My financial advisers somewhat agree with JONJUDE, the Dow will be back up to 12K-13K-14K in 2010-2011, that will be the time to sell. 2012-2013, once the Obama policies are in full force and affecting everything, the markets will be back down to rock bottom again!!!!!
comment by oldfatguy on Nov 19, 2008 8:06 PM ()
Don't ever sell into a falling market. The markets will recover in 2009. Hold onto your new retirement cash and save, save, save, until then. Then buy the blue chips for the recovery. General Electric, IBM, Eli Lilly, Microsoft, etc. ... no oil stocks, banks or auto stocks.
comment by jondude on Nov 19, 2008 2:09 PM ()
I am feeling a little relieved that retirement is years off for me! Hopefully, the economy ... and my 403(e), which is what those of us who work for non-profits have instead of a 401(k) ... will recover by then.
AJ
comment by lunarhunk on Nov 19, 2008 2:04 PM ()
Wow... you are really busy posting today!!!! I just told my cousin yesterday that time is on her side when it comes to her investments. Just sit tight and they will come back. Good post.
comment by anniel on Nov 19, 2008 2:04 PM ()

Excellent advice.
comment by shesaidwhat on Nov 19, 2008 2:01 PM ()

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