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Opportunities in diving
According to Paula Pant, host of the “Allow Yourself Something” podcast, for young investors with the longest time horizon to plan for retirement, today’s downturn in the market also provides an opportunity.
“Deep is your best friend,” she said. “So buy the drop, take advantage of the fact that prices are now low, and don’t try to target the market.”
The best days in the stock market usually follow the worst downturns, so if you keep investing, even if prices go down, you are setting yourself up for a serious profit up. No matter how far you are from retirement, it can prepare you for long-term success.
“Starting during a seemingly rollback, you get acceleration,” Pant said.
The savings are reasonable
Of course, Pant also noted that a properly balanced portfolio for your age, investment time, goals, and risk tolerance is just as important as consistent investing.
If you are unsure of these key aspects of saving, it may be helpful to seek professional help, Tran said.
“If you don’t do it for the sake of life, everyone can benefit from professional financial advice,” she said, adding that there are many levels of assistance for people at every stage of life and budget.
If you’re postponing retirement through 401 (k) sponsored by an employer, it’s also important to make sure you optimize that benefit, says Gorik Ng, author of The Unspoken Rules.
The most important thing is to make sure you set aside enough money from each salary to ensure that you get a matching employer when it is offered.
“If you say‘ no ’to that option, you’re saying‘ no ’to the free money that your employer was willing to give you,” Ng said. Over time, preventing these achievements can have a serious impact on your portfolio and retirement timing.