PFT #79 - Personal Finance Tip of the Week: Stock Market and Inflation Capitulation

This week’s episode is about stock market and inflation capitulation.<br /><br />At the time of this recording the stock market as a whole is 20% down from its previous high water mark and inflation hasn’t been this high since Luke and Laura were popular on General Hospital.<br /><br />So when this occurs many people begin to panic about what to do with their investments. <br /><br />Now this is a logical thought especially for the Millennial generation and beforehand where these people have been through the 2008 Financial Crisis, the Pandemic downturn.<br /><br />The common question that we get is how do we handle our investments. <br /><br />We need to start by saying that each individual has a unique set of criteria meaning one has to decide for him or herself. <br /><br />With that being said, the common rule is that if you are more than five years out from needing to tap into your nest egg, then stay the course.<br /><br />If you are under five years, evaluate your positions and stay the course with your goals. <br /><br />Okay and if you are one-to-two years out, what do you do?<br /><br />Scale down your investments to protect against downside risk or stay in cash meaning stay liquid.<br /> <br />The bottom line is that you need a set of goals to follow in good and bad times by staying educated or working with your financial advisor. <br /> <br />The goal is to build wealth through your working years and scale down as you get closer when the need arises to tap into your money.<br /> <br />Finally, as a credo, investing is a marathon; not a sprint. Therefore, when practicing short-term investing you have to be willing to lose everything that you put into the market; otherwise, it typically means that you couldn’t afford the money in the first place. <br /><br />Website<br /><br /><a href="https://www.somethingonmymind.net/" rel="noopener">https://www.somethingonmymind.net/</a><br /><br />Social Media <br /><br /><a href="https://www.instagram.com/somm.podcast/" rel="noopener">https://www.instagram.com/som