Today senior analyst Eric Bleeker answers a reader's question, who asks "How can I protect my stock-heavy retirement account."
After checking with our personal finance guru Dan Caplinger, Eric still thinks that a stock-heavy asset allocation is appropriate for investors with a long investing horizon, though both recommend revisiting your portfolio allocations from time to time to rebalance to something more in line with your investing horizon and risk tolerance.
Radical knee-jerk reactions, like cashing out, or putting your money under the mattress, do more harm than good.
Remember, while the Dow Jones Industrial Average (INDEX: ^DJI) fell more than 50% in the economic crisis, over the last 10 years, it's rebounded nicely, and is still up nearly 70%. Sometimes, it can be hard to forget just how long a horizon is needed for the patient investor, but those that stay pat usually fare well.
Click the green button below to join the thousands of people celebrating Worldwide Invest Better Day on September 25!
Apple's next smart device (warning, it may shock you
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!