Thoughts on Debt

The DOW Jones is up and then it’s down, so what should you do, should you take your money out now or wait.  Well recently while listening to a financial analyst he said some things that really made quite a bit of good sense to me.  First, he said that if you have money in the stock market and you can afford to leave it in there for the next 5 years, without drawing any of it out, then you should be fine, as this is the period of time that market analysts predict that it will take for the market to completely recover.  However, he said that if you have money in the market that you will need either for a child’s college education or for retirement during the next 5 years, then you should probably take it out now, while there is still some money in there.

I thought this was some really sound advice, especially since we have learned from past experiences in this country that pulling every dime out of the market will only cause it to further decline, so that really doesn’t benefit anyone.  Pulling out just what you think you will need during the next 5 years, makes some good sense.  After that if things improve you could have a much larger sum of money available to you.  Also, investing in the market now, while the cost of stocks remains low, is a great opportunity to buy in low and make a bundle in the long run.

It is not advisable to watch your stocks everyday, especially during the next few months it will be up and then down.  It is still working on balancing out, however it will get back on level ground before long, and wouldn’t you like to be one of the one’s who come out of this mess making a bundle? I know I would.