Financial tips during stock market's wild week
Updated On: Jun 24 2013 11:29:22 AM EDT
The stock market closed out a wild week with a late rebound today with the Dow and S&P 500 ending two days of heavy losses after the Federal Reserve said it expected to end its bond-buying program by the middle of next year if the economy continues to improve.
Some of you may be a little nervous about your investments.
WDBJ7 spoke to Hal Reynolds, a financial planner with Investors Financial Advisors in Roanoke.
He told me we're worrying about these dips in the stock market a little more than we should.
He says these short term fluctuations are actually a sign that our economy is getting better.
These days, there's less need for the federal government to keep pumping money into the system.
Reynolds says the dips we've seen this week are magnified whenever they're paired with a big announcement like the one this week from the Federal Reserve Chairman Ben Bernanke.
Reynolds said this is the best time to start buying.
"I think if you've been waiting to get in the market, now you've been given the opportunity in a much better value than a month ago. I would suggest looking at it as an opportunity to gradually buy things you are interested in buying that best meet your goals or risk tolerance looking forward," Financial Planner Hal Reynolds said.
Now what does this mean in terms of your stock profile, your 401k's?
He says if you need the money in the next two to three years, your money shouldn't be in stocks in the first place.
If you need the money in four to five years, you should go ahead and start moving your money out of bonds when they're at a higher rate.
In the end, Reynolds says, for the long term, investing in the stock market is still the best way to make money.
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