If so, I understand. Having lost a substantial amount of my own retirement to a dip in the market, I know first hand the feeling that comes from opening my quarterly 401k statement only to see a number much lower than I expected. My gut sunk. It was a bad feeling.
So, now I have a strategy for how to approach the stocks in my 401k portfolio. Here is my first tip for becoming more comfortable investing in the stock market.
1 - Diversify. This is always the first piece of advice people give when talking about stocks. And that is because it is true. But it you are truly worried about the stock market, don't just pick stocks from different sectors. Invest some in bonds or other cash equivalents. Common wisdom suggests that the further you are from retirement the smaller your bond investment should be. Then, as you get closer to retirement, you should begin transitioning more of your money into cash equivalent investments to protect the assets when you need the the most. A target-date retirement fund can achieve this same goal.
Check back tomorrow for my second tip for becoming more comfortable investing in the stock market.
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Thanks for the tips! I'm new to all this, so I'll be checking back! :)
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