Stock Market Turmoil Equals Opportunity for Young People
We will all most likely live through the stock market crash of 2008. With oil on its current decline, a lot of young people may not be feeling the effects of the volatility, while older people with more money are watching their 401Ks shrink. But since young people are decades from retirement, the low prices of investments may prove beneficial.
A young person with a retirement fund could bank off the current economic environment by continuing to steadily contribute to their retirement funds. The dumbest thing for a person to do would be to stop investing. With the prices of stocks down, people can contribute the same amount as they have been, but get more shares, then when those stock prices go back up, they’ll own more shares and make more money. The method is called dollar cost averaging.
This is a freaky time, but if we just chill and not make it worse than it is, we’ll live and come out stronger.
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