So you have been doing like I have been telling you, saving and investing. You now have a good chunk of money in your retirement accounts (401k, Roth IRA, maybe even a brokerage account). Everything has been smooth sailing, the market has been bullish, and everything is cupcakes and rainbows.
Well, the market has it’s ups and downs. The last few days the market has been tanking! I wouldn’t call it a crash by any means, but there is all this talk and fear mongering by the media. Heck, I even got an email from our financial advisor on your 529 account, stating don’t worry. So what do you do now? If you listen to many, they would say SELL, SELL, SELL! Sell before you lose it all. That is exactly what you DO NOT want to do!
You see if you sell in a down market you are going to lose everything you have put in. You need to be in the mindset of buy and hold. Meaning, every time the market drops, or there is a scare, you don’t do anything. You keep investing. See, this is like a fire sale! You need to be in the mindset of when the market drops, you aren’t losing, it just means everything is on sale. This is the time to put more money back into the market. You will reap the benefit of this down the line. We aren’t doing speculative investing. We are in it for the long run.
Moral of the story, don’t panic and sell. Keep putting money into your investments, regardless of what the markets are doing, and you will reap the benefits. Love you girls!