Friday, 28 June 2013

There are times when you should use other products besides stocks. When to avoid stocks?

Investing in stocks is not always the best answer for a financial goal.  There are times when you should use other products beside stocks.

Investing in stocks to meet short-term goals is usually not a good idea.  Do not use stocks for any goal that is fewer than five years from completion.  Any financial goal you need to achieve in fewer than five years is exposed to a risk that the stock market will swing to the downside just when you need the money.  The best plans can be sabotaged by a volatile stock market over the short term.

As you approach retirement, you will want to dial back your exposure to stocks and move into safer alternatives.


khat said...

Not able to agree with this view point. Frankly what are the other safe alternatives than are able to give a reasonable return and not let the inflation eat into it. Perhaps you can give some good examples.

khat said...

May I know what other example of safe investment that can give reasonable return that can hedge against inflation?

Anonymous said...

very very unclear article. l cannot understand as there are no examples to support arguments in that article.