Record On Wall Street Spurs Talk Of Retirement Planning
by Chris Cannon
NASHVILLE, Tenn. - Tuesday was record breaking day on Wall Street and that prompted financial planners to urge people saving for retirement to review their assets.
The Dow Jones Industrial Average closed at an all-time high, beating the record it set in October 2007, before the financial crisis. The Dow ended the day up 126 points 14,253.77, beating its previous record by 89 points.
Financial planner Jeremy Rettick, from Covenant Reliance Producers, said it was a milestone day for stockholders who weathered the financial losses starting in 2007.
"If they stayed similarly invested on the equity side of things, or even the bonds, same percentages, they should be close to fully whole to where they were in '07," Rettick said.
The record close on Wall Street is a good time to analyze your investments, according to Rettick.
"Now is a great time to say hey, I need to get a handle on my investments and my retirement plan. I need to understand if I'm invested properly, when do I want to retire," Rettick said.
Retirement planning expert James Webb, with Integrity Retirement Group, said the news from Wall Street should act as a reminder to investors.
"Since we don't have that crystal ball we need to be proactive, instead of reactive," Webb said.
He has a strategy called the Rule of 100. He tells his clients if they are in their 40's they should invest 40% of their assets in low-risk accounts. The higher the decade of life, the higher percentage of investment in more conservative accounts.
"That way, if and when we do have another correction like we did in 2008, you're not out having to find another job in an already tough market," according to web.
He also made note, if you are younger, this is the time to invest.
"A younger person should be putting a lot of money in the market to give them a chance to meet their retirement goals when they get ready to retire," Webb said.
But the news of a record breaking day on Wall Street does come with a warning to be cautious.
"There are many folks out there that believe there is a real chance that there will be a pull back of five to ten percent correction in the fairly near future," Rettick said.
The financial experts said as you get closer to retirement age it is a good idea to visit your financial planner every year so you can adjust your assets to maximize your investment.