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In the downturn, there are opportunities.
According to Paula Pant, producer of the podcast “Afford Anything,” today’s market collapse also presents a chance for young investors with the longest time horizons to prepare for retirement.
“Your best buddy is a dip,” she said. “So, purchase the drop, take advantage of the current cheap pricing, and avoid trying to time the market.”
The finest days in the stock market usually follow the biggest slumps, so if you keep investing even while prices are falling, you’ll set yourself up for big returns in the future. That can put you up for long-term success, regardless of how far away you are from retirement.
Pant said, “Starting during what seems to be a retreat offers you an accelerant.”
Of course, having a properly balanced portfolio for your age, investment time horizon, objectives, and risk tolerance is just as essential as continuously investing, according to Pant.
If you’re unsure about those crucial parts of saving, Tran suggests seeking expert assistance.
“Unless you make a livelihood doing this, everyone can benefit from expert financial guidance,” she added, noting that there are many kinds of assistance available for individuals at various stages of life and on various budgets.
According to Gorick Ng, author of “The Unspoken Rules,” if you’re saving for retirement via an employer-sponsored 401(k), you should make sure you’re getting the most out of it.
Make sure you’re setting aside enough money from each paycheck to guarantee you obtain your company match, if one is available.
“If you turn off such an opportunity, you’re turning down free money from your job,” Ng said. Missing out on such profits over time might have a significant effect on your portfolio and retirement timeframe.