Is it time to sell your stock investments?
If you have a workplace retirement account or brokerage account with investments in the US stock market you may be tempted to sell now. Markets are unpredictable and volatility is scary.
Volatility is the Price You Pay for Returns
Investing 101 informs that you need to take some risks in order to be eligible for a larger return. The problem with that reality is that no one enjoys seeing their investments decline in value. Even if you don’t know anything about investing or understand the mutual funds in your retirement account, you understand a 5 year annual 16.31% gain in your Vanguard Total Stock Market ETF (VTI). You realize that a 16% return is much better than the 0.60% return you’re earning on the cash in your savings account.