“Financial security in retirement doesn’t just happen. It takes planning and commitment. With that said, this brochure put out by the Department of Labor, identifies two smart and FREE ways to limit your risk as you accumulate assets.
Most people in the investment business are happy to sell you products that will “limit your risk” during market sell offs. Unfortunately, they come at a cost which will usually limit your gains when the market rises. How can you limit your risk and let your gains run? There is a way to do it at ZERO COST to you.
- Continue contributing to your retirement plan on a monthly basis (dollar cost averaging), especially when the market tanks. This insures that you will be buying more shares when the prices are low.
- Refrain from taking loans from your retirement plan. Loans have the potential to take you out of the market when share prices are low, and put you back into the market when share are more richly priced.”