News 12 at 6, October 27, 2008
EVANS--With the downhill ski ride the stock market has been taking lately, many of you may be wondering what to do with whats left of your investments.
Do you pull them out or stay the course?
As many of you know, there's no easy answer right now because as one financial planner said, the crystal balls are in the shop.
A lot of it has to do with your age and how much time you've got left until retirement.
Like anyone else, the stock market hasn't been too kind to Thor Peckel lately.
"I figure I've lost 8 to 9 percent." he said. But that's not bad compared to some of his friends.
"They've probably lost upwards of 30 percent." he said.
And he can chalk it up to an interesting personal financial forecast. "I had a bad dream about a year ago and I sold most of my stock from 9 months to a year ago." he said.
Is that the normal way to play the market? Probably not. But was it smart in hindsight? Absolutely.
Thor took his money out of stocks and put them into some safer alternatives. And you can learn from what he did.
Stocks can be high-risk, high-reward. Safer options include certain types of annuities, bonds and cd's. They won't earn you a ton of money, but you won't lose much.
So what should you do?
Financial planner David Cheira says it all depends on your age. If you're young, ride this thing out. If you're a bit older, maybe a change is in order.
"If they are not able to sleep at night because losing their retirement, they do need to move it." David said.
Something Thor is glad he did, so he doesn't have to lose much sleep now.
"I'll be ok. My wife is still working. She can support us." he said with a laugh.
It all depends on what you need to stay calm while the finacial world is so volatile. You may also consider talking to a financial planner or two to get some suggestions on what to do.