A Long-Term Perspective

With today’s changes in the financial industry, turmoil surrounding the housing market, and fluctuations in the stock market, some investors may have concerns about achieving their retirement goals and the security of their retirement plan assets.

During this time, investors should remember to keep a long-term investing perspective while applying sound investment strategies. Investors who attempt to time market moves and chase performance may buy when share prices are high, then panic and sell when they’re low — at exactly the wrong time. But people who continue to invest during a turbulent market may often find opportunities because the price of some mutual funds may decrease, allowing investors to buy more shares that could potentially increase in value over time.

Because it’s impossible to know which type of investment will do best next, it’s important to diversify among several types of mutual funds. For long-term investors, that may mean spreading your money among funds that invest in large, medium and small companies, including some that search for fast-growing companies or for undervalued stocks. Also consider bond funds and other fixed-income investments as part of the portfolio. Read more about long-term investing strategies at the InvestSmart section of our Web site.