September 22, 2008

Make My Monday - The Market Was Actually Up Last Week...

by 3 tenths of a percent. Or so I've been told. The recommended mindset is to not let short term volatility in the market mess up your long term plan. That works pretty much if you're doing a few things consistently.

1. Diversify - Make sure you have a truly asset allocated portfolio.
2. Dollar Cost Average - Make sure you put a regular amount of money into your asset allocated retirement plan every month...especially if your employer is matching it!
3. Discipline - Stick to your plan through thick and thin as it will pay off in the long run. This is particularly true if you've got 10 or more years until you'll be drawing on your retirement plan.

Remember that most companies are gonna be here after the market
volatility has stabalized. In the meantime, it's a good time to invest for long term goals, but not so much for short term. It's a good Monday for the long term. Too bad my new job benefits don't start until next month...heh.

7 comments:

The Gentleman said...

See.. that's exactly the reason why I let my dad manage all this money stuff... I get an headache just reading about stock markets and all that crap...
It worked out pretty well so far... in my family we are all for the "minum risk, steady gain" policy :P

citizen of the world said...

I have no employer, but I do try to put money in on a fairly regular basis and have my funds pretty well diversified (within the limits of what is avaiable in socially screened funds). But my main rule is to leave the money in once it is there.

TheWeyrd1 said...

Gentleman...so when you move to California you're gonna have to marry a financially savvy woman...right!?!

Citizen...I believe you're following my 3 suggestions!

citizen of the world said...

I must have been receiving them telepathically even before I knew you!

TheWeyrd1 said...

Citizen...either that or great minds think alike!

LostInCO said...

It gives me a headache too.

TheWeyrd1 said...

Lost...that's why you need a financial coach instead...lol