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I'm not talking about the greenbacks, you should keep at least six months expenses in cold hard cash within your control.
I mean the part of your Roth, 401K or other retirement plan that should be in cash.
Market has dropped, a damn good bit, and will likely drop more.
Just like in your scenario planning, have "trip wire" points already laid out in writing ahead of time so you don't waver.
If your close to retirement, those trip wire points with the market could be points where you bail out on other investments if the market continues downward- limiting loses and cutting your riks.
If your not close to retirement (10 years plus), then those trip wire points may be where you use some of that sidelined cash to buy stocks and funds that have fallen in price heavily.
Already is, and going to be further discounts on REIT's now and coming up. Good long term REITs that have paid out 8-12% consistently for a long period of time.
Already is, and will likely continue to be some further discounts on some of the oil related stocks- MLP's, etc. that have been paying out 10% or more in distributions for a long period of time.
Always keep some cash on the sidelines of your investment account, but don't be afraid to snap up some bargains as the market drops.
These stocks paying good dividends will also help offset any losses from not buying at the right time as well.
My Roth account is down a bit now from a few months back, but dividend income over the next year will more than cover the current down amount. I have sold some winners when they were up and I'll try to not sell any more losers than necessary when the market is down- especially if they continue to pay dividends.
Actually the major down portion of my Roth currently is precious metals mining stocks. Should we see a repeat of 2007'ish time period, these mining stocks may see a bump again and having bought most of them dirt cheap, I'll be looking to dump those as they pay no dividends.
How about you? Closer to retirement and making some moves for protection now?
I mean the part of your Roth, 401K or other retirement plan that should be in cash.
Market has dropped, a damn good bit, and will likely drop more.
Just like in your scenario planning, have "trip wire" points already laid out in writing ahead of time so you don't waver.
If your close to retirement, those trip wire points with the market could be points where you bail out on other investments if the market continues downward- limiting loses and cutting your riks.
If your not close to retirement (10 years plus), then those trip wire points may be where you use some of that sidelined cash to buy stocks and funds that have fallen in price heavily.
Already is, and going to be further discounts on REIT's now and coming up. Good long term REITs that have paid out 8-12% consistently for a long period of time.
Already is, and will likely continue to be some further discounts on some of the oil related stocks- MLP's, etc. that have been paying out 10% or more in distributions for a long period of time.
Always keep some cash on the sidelines of your investment account, but don't be afraid to snap up some bargains as the market drops.
These stocks paying good dividends will also help offset any losses from not buying at the right time as well.
My Roth account is down a bit now from a few months back, but dividend income over the next year will more than cover the current down amount. I have sold some winners when they were up and I'll try to not sell any more losers than necessary when the market is down- especially if they continue to pay dividends.
Actually the major down portion of my Roth currently is precious metals mining stocks. Should we see a repeat of 2007'ish time period, these mining stocks may see a bump again and having bought most of them dirt cheap, I'll be looking to dump those as they pay no dividends.
How about you? Closer to retirement and making some moves for protection now?
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