With the Dow Jones Index currently around 6700 points today, its lowest point in nearly 12 years, I hate to say “I TOLD YOU SO!”Oops, I guess I just did.
However, although I am not a big fan of investing money in mutual fund-based investments, like 401(k)’s, IRA’s, etc, I NEVER want people to suffer heavy losses that compels them to wake up and listen to what we are teaching. Nevertheless, loss does cause us to question our assumptions and explore new, and more effective, possibilities.
I had several clients last year (when the Dow was around 11,000) ask me about what I felt the market would do. I told each one of them that even though it seems irrational (at that time), expect the Dow to tank somewhere near 6000, and quite possibly lower because a Depression IS coming. Some took action while others did not. The ones that took action, even when it hovered around 8500, are smiling much bigger now that they took their own initiative to reallocate to safer funds.
For those that still question whether to get out or what to do, I will have you answer the following questions so you can decide for yourself:
- Do you KNOW what the market will do next?
- Do you keep hearing financial “experts” telling you to stay in for the long haul, although the long haul seems to be getting longer?
- Can you make the markets go up?
- Are you only investing in these because someone, like a financial planner or HR representative at your company, told you it was a “wise” thing to do?
- Will these vehicles REALLY help you retire well?Watch “The Retirement Titanic.”
- Are you “in the dark” about what is the best investment for you?
You are not alone if you couldn’t answer these confidently. Will you wait for it to drop further before you do something? If you have more questions, feel free to comment, email me, or Dale, at email@example.com or firstname.lastname@example.org.