In the event of equity market decline, where is the safest place to put my retirement investments where I will experience the best returns?

If the equity market declines, where is the safest place to put my retirement investments where I will experience the best returns. I am 49 years old and I have a relatively high ratio of risk to return.

Retirement, Investing, Stocks
Answers
Sort By:
Most Helpful
January 2018

Madison, John

Ashland, VA
80% of people found this answer helpful

If (or really, when) the equity markets decline, the best place for your investments is the equity market! Once it's dropped, stocks are on sale so buy them! Long-term investors - which you should be if you're investing in the stock market - stay invested (at their risk tolerance), even in the face of a market correction or bear market. Re-balancing into the market is a great way to "buy low" and "sell high"!

Your questions leads me to think, perhaps incorrectly, that you're nervous about your current holdings. If that's true, I'd encourage you to determine whether your investment allocation reflects your risk tolerance, especially in light of the dramatic increase in the markets over the last 15 months. If your allocation matches your tolerance for risk, sit tight and re-balance periodically to either capture gains (if the market increases) or buy shares on sale (if the market declines). If your current allocation is too risky for your risk tolerance, re-balance to the proper allocation today. I recommend this not because you or I can predict the future market moves, but because your portfolio doesn't match your profile.

Trying to time the market is a losers game. Just don't play! Find the right portfolio mix for you and stay the course!

Good luck!

January 2018
January 2018
January 2018
January 2018