Question:

Mutual fund and the economy?

by  |  earlier

0 LIKES UnLike

Should I take out the money I have wrapped up in mutual funds? I get the feeling that the economy is just going to get worse, and that I'll likely need the money if it gets as bad as some people are predicting. Also, wouldn't I lose it anyway, considering companies stocks and the economy? Thanks.

 Tags:

   Report

4 ANSWERS


  1. Think of your mutual funds as 5-10 year plans.  If you plan on needing the money then you should invest it in something more stable.  If you shop around you can find some good interest rates on money markets.


  2. How are you investing in them?  Taxable accounts or are you talking 401(k)/IRA?  What is your investment time line?

    Mutual funds are designed for long term investors.  People who pull money in and out of them trying to time the markets and economy usually fare worse than those who invest steadily and stay invested.

  3. Did you carefully and honestly assess your goals and risk tolerance before you started investing?

    Did you set up an asset allocation based on your goals and risk tolerance?

    Did you buy low-cost index funds?

    If yes to these question, you'll do fine. Stay the course.

    If no, then go back to square one and do these things.

  4. Depends which mutual funds you are holding.  If you believe the economy is tanking, and you are holding mutual funds which are short the market, it would not be wise to sell them, as they will go up in price.  I think you should continue to contribute if you are currently doing so.  Just choose a different fund.  Like maybe a money market fund that gives you a little bit of a return.

Question Stats

Latest activity: earlier.
This question has 4 answers.

BECOME A GUIDE

Share your knowledge and help people by answering questions.