Why Stocks Still Matter for Your Retirement
With the great Recession remaining at the top of everyone’s minds (notwithstanding economists who say it’s over), an unemployment rate exceeding 9%, an underemployment rate far higher, and a correction in the stock market, it’s not surprising so many people remain out of the equities.
But that’s probably not the best long-term strategy.
Despite the crazy ups and downs of the stock market, alternative investment options are unlikely to provide any better rate of return over the long-term.? Now, I’m not stupid -? I’ve read the countless articles you have which point out the relative non-performance of stocks over the last 10 years.? that feels like – and is – a long time.? so I feel the pain.? But where else are you going to go?? Bonds, CDs, or cash, all of which pay next to nothing?
Actually, yes.
You should invest in such conservative investments.?? they often help weather the storm.? Just not entirely. the same way it never made sense to invest 100% of your assets in the stock market during the boom, it doesn’t make any sense to invest 100% of your assets outside the stock market during a down period.
Follow a logical approach:?? make sure your asset allocation is reasonable, rebalance as necessary, and dollar cost average consistently. Follow those guidelines for your best chance, with no guarantee, for long-term success.
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Why Stocks Still Matter for your Retirement originally appeared on About.com Retirement Planning on Thursday, May 27th, 2010 at 12:21:20.
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