I asked a friend what he's doing with his 401k right now. He said.."pretending like I don't have one.". Well, I asked a financial adviser at work what his thoughts were during this financial meltdown. And here they are. Perhaps it will help you out.
"The dramatic declines we’ve experienced are similar to what happened following the 9/11 attacks and granted it will take much longer for the market to recover this time around, but this volatility really has no impact on anyone with a time horizon of greater than 10 years.
The best strategy right now is to ride out the storm because you never sell out of panic or fear, only out of need and at present you only have a paper loss. If you were to proceed with a sale then you effectively are accepting the loss where if you hold on to it then you are likely to recoup those losses in the long-term because we know that 20-30 years from now the markets will be significantly higher."
Saturday, October 11, 2008
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