Bungee Jump Stock Market reader reaction
Hey Terry
Been following you for years. In your latest column you refer to market drops with words and phrases such as, sickening drop that melts your money away and losses. I think folks need to be taught a market drop is a drop in valuation (you still own the same amount of shares)and doesn’t become a loss until you sell.
Terry Says
Ha! Great point! And I attempted to say that in my newsletter and TV and radio commentaries. If you’re a long-term investor, the trend for America (and the stock market0 is always UP — and always has been!
BUT, if you are going to be required to take withdrawals, then you should raise cash so you won’t be FORCED to sell to take RMDs.
AND, if you’re going to keep looking at the balance in your account and have a heart attack and panic and sell at the bottom (which typically happens), better to think about that possibility in advance and raise some cash. Sell down to the sleeping point, as the old adage says!
