There are some concerns from investors about the state of the market, skyrocketing inflation and of a possible downturn or recession in the near future.
But some might not know that such economic factors could be a positive, according to Nancy Hecht, financial advisor for Certified Financial Group.
Hecht said anyone under 60 should still be happy, one reason being any downturn is cyclical and investments will bounce back.
“If they haven’t sold anything, they haven’t lost anything,” she said.
In addition, investments on the downswing could mean it’s a great time to buy.
“For some reason, we like to buy everything on sale except for investments,” she said. “If you are in the accumulation phase and the markets are going down, you should be happy.”
Anybody over 60 also shouldn’t have concerns, Hecht said.
“If you are over 60, then what you have to look at is your life expectancy,” she said. “Chances are good you are going to live 25 or more years. That’s a long time to have money working for them. If you are not taking income and you are reinvesting, it’s still a gift. If you have to take income, you can turn on the spigot to just pay the dividends out and not necessarily sell the shares, so you are not losing.”
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