Staying out of the markets
In recent times the most common financial misstep I have seen is not participating in the markets. 2007/2008 was a traumatizing time for all of us, but some have not recovered – both emotionally and financially. I have clients who started working with me in 2008. They had taken their money out of the markets.
Unfortunately for most, they withdrew their accounts when the markets were at or near the lows. These individuals have not reentered the markets as they are afraid to relive the same experience.
For most people the markets are a necessary part of their financial lives. People need growth in their portfolios to allow them to reach their goals. Historically, growth has been achieved in equities such as stocks. It has never been a smooth ride in the stock markets; ups and downs are a part of the journey. Investors want to make sure that they have the time and/or liquid assets to ride out the negative years. That can help take the emotions out of the setbacks.
--Linda N. Homsey, Freya Financial Services, Winchester, Mass., 01890, firstname.lastname@example.org