{"id":2272,"date":"2013-03-20T11:49:25","date_gmt":"2013-03-20T16:49:25","guid":{"rendered":"http:\/\/www.billlosey.com\/?p=2272"},"modified":"2013-03-20T11:49:25","modified_gmt":"2013-03-20T16:49:25","slug":"saving-for-retirement-dont-be-afraid-of-stocks","status":"publish","type":"post","link":"https:\/\/billlosey.com\/knowledge-center\/saving-for-retirement-dont-be-afraid-of-stocks\/","title":{"rendered":"Saving for Retirement: Don&#8217;t be Afraid of Stocks"},"content":{"rendered":"<p>If you\u2019ve been reluctant to invest in the stock market, you\u2019re not alone. Thanks to the credit crisis of 2008 and doomsday headlines, the volatility of the stock market over the last few years has left many investors running for cover and feeling like investing any portion of the retirement nest egg is too risky. The truth is, though, if you are saving for retirement, avoiding stocks completely is not a smart move.<\/p>\n<p>According to Money<em><em> <\/em><\/em>magazine, if you had invested $10,000 in a money-market account 20 years ago, you&#8217;d have almost $19,000 today. That&#8217;s a safe bet, but not a tremendous amount of growth. Avoiding retirement strategies that involve stock investment can drastically affect your standard of living upon retirement. On the other hand, no one can give you 100 percent assurance that stock investments will flourish. How can you strike a balance? Consider the following tips.<\/p>\n<ul>\n<li><strong><strong>Keep it simple.<\/strong><\/strong> Trying      to predict the unpredictable will lead to disappointment. Those who trade      often and constantly analyze irrelevant data points will experience      unpleasant surprises. Instead, keep things simple. Look for economically      stable companies or a broadly based index fund, and invest with a      long-term goal in mind. No stock investment is guaranteed, but your odds      of success are certainly increased<\/li>\n<li><strong><strong>Be realistic.<\/strong><\/strong> Set up      your stock portfolio or retirement investment plan in a way that respects      that risk is involved, but recognizes that higher gains are also possible.      Stocks are able to generate higher returns because of the risk involved.      If you remove the risk, you also remove the potential for a higher yield.      Balance your feelings of distrust with a realistic outlook.<\/li>\n<li><strong><strong>Offset risk by diversifying. <\/strong><\/strong>Regardless      of what kind of investing you are doing, placing all your eggs in one      basket is never a good idea. Invest a portion of your savings in stocks      with the balance in bonds and cash. Diversification also applies to your      stock investments themselves. Get a good mix of investments based on your      risk tolerance. Consider large cap, mid cap, and small cap funds that are      both growth and value oriented.\u00a0 If you are young, decades away from      retirement, you can afford a riskier portfolio more heavily weighted to      stocks. As you near retirement, you may want to decrease your stock      exposure and the overall risk of your entire portfolio.<\/li>\n<li><strong><strong>Invest in different industries and countries. <\/strong><\/strong>Having      a variety of industries in your portfolio helps to insulate you from      disaster. When one industry tanks, you have others to make up the      difference. Also, invest in different countries to reduce risk.\u00a0 For      example, my Private Clients have exposure to nearly 100 different      countries by investing in only two different mutual funds.<\/li>\n<li><strong><strong>Get help.<\/strong><\/strong> A good      financial advisor is a valuable asset. Be wary of anyone who promises a      fool-proof stock investment. No such thing exists. Look for someone who      will speak openly, make wise suggestions and respect your risk tolerance.      Do your research about the firm and don&#8217;t be afraid to ask for references.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>If you\u2019ve been reluctant to invest in the stock market, you\u2019re not alone. Thanks to the credit crisis of 2008 and doomsday headlines, the volatility of the stock market over the last few years has left many investors running for [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[],"class_list":["post-2272","post","type-post","status-publish","format-standard","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/2272","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/comments?post=2272"}],"version-history":[{"count":0,"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/2272\/revisions"}],"wp:attachment":[{"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/media?parent=2272"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/categories?post=2272"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/tags?post=2272"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}