Worried About Retirement? An Expert’s Investing Advice For Summer 2020
Whether you're an old pro at investing or the recent events are causing you to reflect that maybe you should be, many of us are curious about the wisest way to go about investing your money at a time like this.
Thankfully, financial expert Suze Orman has addressed some of these concerns lately. Here's some of her advice to all of us as we do our best to navigate the economics of our situation:
Concerning stocks, Orman believes that they always are good idea when considering your long-term goals. Obviously, it's not a good idea to count on stocks changing your financial world in the short term. But, when you're considering 10 years or more, overall stocks tend to produce "the best inflation-beating returns." Even if you're over 60, the statistics show that many live well past their mid-80's in this day and age, so it applies to you, too.
If you do want to do your best to "time the market," Orman says it better be one of your superpowers. The problem with "jumping out of the market" is that then one has to consider the best time to jump back in. It's hard to know the best time to time this out perfectly to get the return you're hoping for. Want to dig in deeper here? Take a look at this.
Best way to continue planning for retirement in this market? Orman suggests you keep your retirement money in and growing. She specifically mentioned one reader who'd lost their job and found themselves pondering what to do with their 401(k) since he can't add to it right now.
She told him that "if you have at least $5000 in a retirement account when you leave a job, you will likely be allowed to leave it right where it is, and it will continue to grown for your retirement." She also said you can do an IRA roll over--something I did in years past. This means you can move the money from your 401(k) to an IRA at another brokerage. She says it's best not to touch the money if at all possible.
More advice for investing wisely for your retirement in summer 2020? The Washington Post has a good article for your perusal here.