If you listen to television and radio or read newspapers, newsletters, magazines etc., you might be led to think that our financial world is teetering on the edge. Yes, economic times are quite difficult worldwide.
However, realize that whether ‘times are good or bad’ ,we are always teetering on the edge of a change in the financial markets. But with good reason, we simply feel better about impending market movements when times are good. Our optimism powers us forward. Many of us are probably secretly thinking/hoping that an upward market trend will go on forever.
Since the market free fall of 2008, we are acutely reminded that investing is for the long-term and that ‘one size fit all’ investing does not work. Long-term investing is a turtle’s race. If you need your invested money in the next 10 years, the amount you need should not be invested in the stock market. Remember: Over the years, the stock market has always been a risky investment arena -not just in 2008-2009.
Despite the recent ‘market mania’, now more than ever we must keep a balanced attitude when it comes to investing for our long-term futures. Women investors are notorious for investing too conservatively. And when fueled by fear, long-term investors (both male and female) may tend to make investment moves out of fear and not from a place of reasoned thinking.
So what should a woman investor do now?
- Have a financial plan*
- Review your financial plan at least annually
- Stay the course with your financial plan
- Increase your savings rate at every opportunity
- Stop listening to the doomsayers in the media
*Your financial plan should always:
- Match your time horizon
- Match your risk tolerance
If your financial plan is right for your time horizon and risk tolerance, you will likely be able to continue to invest money in the stock market and sleep well at night.
Jane Nowak is a Financial Planner with Kring Financial Management located in Atlanta, Ga. Jane’s practice focuses on Women’s Retirement Planning and Financial Planning for Women. Her articles have been published on line at NASDAQ, Financial Planning Association and Womenetics.com. Follow Jane on Twitter at: http://twitter.com/moneygal2020