The subprime mortgage mess, higher demand for energy products overseas and the weak state of the dollar all contributed heavily to the recent downward volatility in the stock market. If I were retired I might give it a second thought, but I doubt it. I plan on being mostly invested in the stock market right up and even well into retirement. I am not going to get rich quick but slowly over time and there will be bumps in the road, this is one of them. As long as you have a diversified portfolio of the broad stock markets (international and emerging market holdings as well) things will be fine over time.
If you would like to read the best book ever written on the subject, read "A Random Walk Down Wall Street" by Burton G. Malkiel.
I would be remiss to mention that you also need the personal risk management tools in place for your family for your personal financial success to work out regardless of circumstance (life insurance, disability insurance, long-term care, and last but not least personal property coverage)
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