Ask Terry Questions Market losses!

Market losses!

By Terry Savage on March 08, 2020 | Investments

Terry I am retired and have $50000 invested in the market and have lost almost $3000 in the past 3 days. I am panicking because I can’t afford to lose much more. Do I move this money out of the market or wait it out.

Terry Says

Oh gosh, I have been warning retirees for the past 6 months, or even longer, about the risks in the stock market. No one — absolutely no one — knows how far the market will drop or how long the decline will last.
You answered your own question: You “cant afford” any more losses. Switch into a money market mutual fund so you limit your losses. As a retiree, you aren’t benefiting from lower prices, because you aren’t continuing to contribute.
Have the discipline to say enough is enough.
Will you hate me, and this decision, if the market rebounds? Maybe. But what if the market drops even farther, and stays down longer? Then you will hate yourself!



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