BFG in the News: James answers a reader’s question about re-entering the market
Investing Retirement Planning Baron Team InsightsJames Suazo, ChFC®, is quoted on this topic, answering a reader’s question on NJMoneyHelp.com by Karin Price Mueller, “We sold our stocks. What should we do with the money?”, originally published on September 7, 2022.
A 60-second read by James Suazo, ChFC®: Without knowing your full financial situation, we recommend answering the following questions to help you make an informed decision. The most important aspect in Financial Planning is your well-being and we surely do not want you to be anxious.
1. Will you need these funds to support your lifestyle within the next year? If so, you may want to consider keeping these funds in cash.
2. Do you have a Financial Plan in place? Having a Financial Plan is beneficial in many ways, most importantly, it can provide peace-of-mind knowing you have planned for various outcomes. The financial planning process will help determine how much cash you should keep available to reach your goals in retirement.
3. How much risk are you willing to take? Now that you sold your stock and are considering entering the market again, you should consider your willingness and ability to take risk. Having a systematic approach to investing helps keep emotions out. Market timing can be very difficult because one needs to be right on both sides, when to exit and re-enter the market.
4. CD rates have gone up. If you don’t think you will need the funds soon, a CD could be a great option for a stable investment as you consider your next move. This way your money is generating some return and that could provide some relief.
Read Karin Price Mueller’s article here.
If you have any further questions, please reach out to your Baron Team.
Disclosure: This is a general communication being provided for informational purposes only. Past performance is no guarantee of future results. Every investment strategy has the potential for profit or loss. This material is not intended to be relied upon as a forecast, research, tax or investment advice.