With the Dow gyrating unpredictably in recent weeks, Americans are increasingly faced with the choice of whether to stay the course on their investments or cut their losses and get out while the getting is still good. Seniors, many of whom invest at least a portion of their life savings in stock portfolios, are particularly susceptible to the recent market hysteria, given that just one steep drop in the value of their investments can mean make or break. While some say it’s best not to panic too much too soon, others say it’s high time many retirees strap on their life preservers and bail out of these choppy market waters while they still can.
One financial expert says it’s important to reduce “concentrated risks” in the portfolios of clients who are retired or nearing retirement. Another advises that there are certain practical steps someone getting a little anxious can take to “regain their emotional equilibrium,” such as putting a process in place for liquidating small portions of their portfolio over time.
Read more at SmartMoney.