Stocks plunged Monday and the market has unnerved investors during the past two weeks with its gut-wrenching ups and downs. But if you’re a long-term investor, what should you do with a 401(k), IRA or 529 savings plan for your kids’ college tuition?
Stay the course.
CNN Business spoke with five top money managers to get advice about how to navigate these increasingly stormy market seas and find out how investors are managing during these choppy times.
All of them said now is a good time to reassess your goals and investing strategy — but not to panic and rush into bonds or cash. For most investors, especially younger ones, stocks will give you the best chance of solid returns over the long haul.
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“For the average investor we are advising them to tune out the noise and resist the temptation to make rash moves. Keep calm and stay the course,” said Carolyn Wegemann, a spokeswoman for Vanguard. “The majority of our clients are taking the long-term perspective.”
Younger investors who prefer passive exchange-traded funds over individual stocks also weren’t panicking, according to Adam Grealish, director of investing at Betterment. Betterment is an online investment firm with automated roboinvesting strategies that let people buy ETFs that mimic the performance of the S&P 500 (SPY) and other top indexes.
Foundingfrog
Article URL : https://www.cnn.com/2020/03/06/investing/401k-stocks-coronavirus/index.html