When the bailout plan was formed, many people were hopeful that the stock market would rise again, but the failure of the bill to pass caused panic in the market and thus led to the greatest single-day point drop! But before everyone starts to transfer their investments to other places, one must consider that this is not the worse we have seen. If your consider point wise, it may be the greatest drop but percentage wise its not the greatest drop. Also, if your original intention was to invest for a long term, then you might be making a mistake in transferring your investments, as it might be an opportunity to buy rather than to sell.
If you are young, then this might be a good buying time for you to start on long-term investments. If you’re older, just try to make sure that your investments are balanced and are going according to your plan for long-term investment. The Iowa Public Employees Retirement System has designed a calculator to help you estimate the investment and the return by adjusting the sliders to correspond to your age, income and requirements.
One thing to be careful about when making any type of investment is the expense ratios. These are the different types of fee the fund charges you when you invest. Make sure that the expense ratios are low (index funds offer lower ratios) as these can accumulate over the time and go up to tens of thousands of dollars.
The best way is to make a strong long-term investment plan and stick to it no matter what the market conditions are. The market will eventually rise and sooner or later, a bailout plan will come.…Read More