R I D I N G
T H E
R O L L E R C O A S T E R
If you’re like most people, watching the financial markets these days is hard!
We all know we’re supposed to invest for the long-haul (and we absolutely should.) Somehow, though that is not always comforting enough. It’s easy to feel like you have no control over your future.
Let me tell you three things you can do to make sense of this crazy market!
1. Dollar Cost Averaging
It’s very scary to think about adding money to these markets! Unless you’re psychic, how can you know for sure what’s going to happen? Truth is, you can’t.
Ironically though, the best thing to do in times like these, is to actually add money to the market every month. This means you won’t have to worry what the market is doing all the time. This is known as dollar cost averaging.
2. Taking Losses
If you have unrealized losses in your taxable personal account, you may want to sell these stocks to offset any gains.
3. Buy Dividend Paying
Stick with stocks that pay dividends. This way you get a stream of income while you wait for the price of the stock to go up. Also, the income you receive from dividends is only taxed at 15%. Look for companies with high levels of cash and low debt.
Please don’t hesitate to call with questions about any of these strategies!
This material is Copyrighted: CAIM LLC, September, 2008