Money talks and for a lot of us in the past year our money walked. The past year has seen people loose savings, jobs and large portions of their retirement funds. Our money has been flying out of our pockets in record time as the economy continues to sink deeper into a recession. So what are some of the options people should consider when it comes to their retirement funds? Should we cut our losses and pull out our investments? Stay in our funds and investments and continue to ride out the storm?
Many people have cut their losses in a panic and moved their money into much more conservative investments like money market funds and Cd’s. Of course all these people pulling out thier money at the same time only digs the hole deaper for the stock market. Less investors putting their money in the market means less value and volume which only helps to bring the stock prices even lower.
There are just a plethora of companies who’s stock prices have had their bottoms fall out from under them simply by association. A good portion of the companies that are suffering right now are suffering for no other reason than the whole market is down about 40% in the last year. Which is great for those people that lost a good portion of their retirement funds. Why?
That means there are a good amount of quality companies that are in good shape fiscally they are just waiting for the market to rebound. Weeding out the good from the bad of course is the trick. Make no mistake there are some great opportunities out there for people to make their money back.
Of course every one’s situation and willingness to gamble with what little money they might have left is different. One of the biggest deciding factors may be the age group you are in and how close you are to retirement. How much time do you have to make up for losses you may have just suffered in the last year? Is now the time to be aggressive or stay conservative?
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