Financial Malaise
The economic and financial meltdown is headline news. People are
affected in multiple ways...joblessness, depressed home values, and
low asset prices. It's the people who lose their jobs that are hurt
the most. Without an income, life is a matter of survival. What to do?
If you are struggling with a job loss, then do whatever it takes to
get another job, including retraining and new careers.
As long as people can afford to make their mortgage payments, the
decline in housing prices is just an aberration that must be endured.
Some logic goes for the decline in asset values (stock market and 401k
values). All asset prices will recover eventually, including the ones
we'd prefer remained low like oil prices, when the mass hysteria and
market aberrations subside. Once the shock wave of imprudence and
excess exuberance works its way out of the system, all will be well
again in due time.
In the meantime, the best course of action is to "keep on keeping
on". Keep your job, keep your home, and continue to invest in the
abnormally low asset prices. The best time to buy anything is when
prices are historically low, as they are now. The only exception is to
forestall deferrable
purchases in order to build up a cash reserve. The economy will get
worse before it gets better, and there is no telling what misfortunes
might befall you...the worst being job loss. So, have a cash cushion.
Once you have a cash cushion (at least one-half years worth of
expected expenses), then invest the rest monthly into your 401k and
buy no load mutual funds as the market weaves up and down during this
market cycle. The future you will be glad you did.
You are visitor number
to this web site
Website last updated on 12/22/2008
Copyright ©2005 Charles W. Sooter. All rights reserved.
