Dear Dave,
I cashed out my portfolio several months ago, because I just couldn’t sleep at night with all the market swings that were happening. What do I do now that I have the cash?
-Max
Dear Max,
That’s a tough one. Personally, I wouldn’t have cashed out. The good thing is that you cashed out high and now you can buy low. The bad thing is the market may go even lower after you jump back in the mix!
But your biggest problem isn’t your sleeping habits. It sounds to me like you got caught up in the doomsday talk and forgot to think about things from a long-term perspective.
I recommend that you go back to what I’ve been teaching for years. When it comes to investing, take the long road. Don’t worry about what’s happening today. Don’t worry about what may happen next week, next month or even six months from now. An investment is something you leave alone at least for five years.
If you look back over the history of the stock market, 97 percent of the five-year periods have made money, and ALL of the 10-year periods have made money.
We’re going to be okay. The American economy will prosper in the long run!
- Dave
Dear Dave,
My wife and I bought long-term care insurance 17 years ago. We’re now in our eighties. We’ve never had to use this insurance, and we were wondering if buying it was the right thing to do.
-Ken
Dear Ken,
You bet you did the right thing! A nursing home costs $30,000 to $50,000 a year. That kind of money will crack and scramble a nest egg in no time flat.
I strongly recommend buying long-term care insurance by age 60 that will cover in-home care or nursing home care if needed. It’s absolutely vital!
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