Investors of All Ages, Take a Deep Breath
Wednesday, January 23, 2008; D01
The stock market is plummeting, the housing market is tanking, and talk of recession has reached a fevered pitch. So what does this mean for the American consumer?
If you've got a mortgage, is it a good time to refinance now that the Federal Reserve has slashed the federal funds rate? If you've got credit card debt, will your rates decrease? And what about the stock market? Buy, sell or sit tight?
The good news is, you should see lower interest rates on student loans, credit cards, home-equity lines of credit and some mortgages. But keep in mind that the subprime mortgage meltdown has produced a tighter credit market. That means you will need solid credit and, in the case of refinancing, enough equity in your home to reap the benefits.
Investment strategies depend on your stage in life, but financial advisers said they are giving their clients, regardless of age, one simple piece of advice: Stay calm. If you've got a diversified, not-too-aggressive financial plan, you should be able to ride out the turbulence.
"The worst thing anyone can do is react to these market events," said Fran Kinniry, a principal at Vanguard Group.
J. Ambler Cusick, a financial adviser at Smith Barney, put it bluntly: "Don't do anything stupid."
-- Nancy Trejos
STARTING OUT: Time is on Your Side
MIDDLE-AGED: More Resources, More Challenges
RETIREMENT BOUND: Braving a Downdraft
Do's and Don'ts
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5 comments:
Wnat to see a joke
"When it comes to retirement savings, don't fret. People should be prepared to live until they are 95, so a middle-aged investor still has a ways to go."
How many of you folls think you're going to live that long and are basing your retirement / portfolio on being 95 years old
Not 95; My plan goes to 80, which is more realistic!
Doobydew!
Thank you for pointing us to interesting information; this makes the blog a source of useful information, as opposed to a source of speculation.
I think everyone in the nation is in a world of hurt and is soon to go down the tubes. Stand by for the recession and then the depression if Hil-Billery gets in office.
Did anyone in TCP-2 notice that the contribution for 2-22's pay day to your 401K were not made, and haven't been made as of 2-27? Too bad we missed two days of nice gains in the market.
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