For the last year and a half, against my better judgment, I have poured over each and every one of our monthly financial statements, watching as the total value of our portfolio decreased a little more than the month before. My poor adviser has been bombarded with emails, phone calls and voicemails about what my husband and I should do with our money. Should we continue to invest each month? When will we make that money back? I finally met with my financial adviser yesterday afternoon and I wanted to share with you the advice he gave me.
Be patient. If you are patient and financially capable of riding out the current economic downturn, the stocks you buy now will eventually recover and even earn more money than you would make in certificates of deposits or if you just left all your money in cash. The key here is patience because, according to my adviser, this could take as long as 7-10 years. If you can wait that long before touching the money you’re investing, you’ll be in great financial shape.
Don’t worry about current market values. Don’t do as I did and pick apart your financial statements each month with a fine tooth comb. Stock prices are lower than ever today and will enable you to buy many more shares than you might have been able to this time last year when prices were almost 40% more.
Buy as many shares as possible now. The more shares you have, the more money you will make when stock prices rise. This WILL NOT happen overnight-right now you are taking advantage of a bad economic situation that will pay in spades 30 years down the road when you want to retire and sail around the world.
Talk to your financial adviser to determine which stocks are right for your personal and financial situation.
