March 15, 2001--
Things calmed down a bit in the stock market today, giving investors a chance to breathe again!
It's been a wild week, and because of that, a lot of people have been re-examining their portfolios.
Keith McCord has more on that.
People are really taking a close look at their retirement programs.
There are a 401-ks and IRAs out there, and many took a hit this week!
It's challenging to be an investor in the stock market right now.
Consider what happened to Sue Townsend. She's been buying and selling stocks for 20 years, and considers herself a smart investor.
But she's second-guessing herself this year. She's lost a third of her $900,000 portfolio!
SUE TOWNSEND/Investor: "THE MONTHLY STATEMENTS COME. I OPEN IT, BUT I DON'T LOOK AT IT BECAUSE I KNOW BEEN GOING ON IN THE MARKET, AND I THAT THE REPORT IS JUST GOING TELL ME THAT ITS GONE DOWN AGAIN."
Or take the case of Julie Braunger. She's retired, and lives on her investment accounts. She's taken a hit too-- losing $9,000 in the past four months!
Julie Braunger/Investor: "BECAUSE I RETIRED, I CAN'T ADD ANYMORE TO MY 401K AND ALL I'M DOING IS WATCHING IT DROP, DROP, DROP!"
So, what do you do? Especially with those retirement accounts?
First of all, don't panic. And several financial experts that we spoke with in Utah today, said local investors are holding tight.
We did ask for some advice as to where we should invest our money, based on years-to-go before retirement.
The longer you have-- say you're between 20 and 45 years old, load up on stocks.
As you approach 50, back off on stocks a bit, and add more bonds.
When you retire, and plan to use your investments as income, do a major switch to bonds and cash.
Each investor's situation is different, of course. And remember the old saying, 'Don't put all your eggs in one basket.'
Ed Slott/IRA Analyst:"GO BACK TO TRADITIONAL VALUES AND GET A LITTLE OF EVERYTHING.. DIVERSIFICATION IS THE WORLD'S GREATEST HEDGE."
Local economist Jeff Thredgold gave me a copy of his new book a few weeks ago, and I was looking through it today. In the chapter about the stock market, he makes this statement: "Thanks to the stock market, we don't have to go to a health club to sweat!"
Boy, is that true this week!
