Read more: Money, Matter, David, Boike, Retirement, Resources, 401K, Money Matters
Many Americans have been rejoicing as the stock market has been on the rise lately. That's some welcomed news for everyone who is invested in the stock market. As a financial advisor, I get to talk with a lot of people. The question on the minds of many folks recently has been how long until my account catches back up to where it was? Many of these folks had another advisor who had them invested too aggressively and their accounts are still way down.
"No doubt about it: Most older Americans are struggling to recover from their investment losses. The question is how long it will take for portfolios to rebound. Jack Vanderhei, the research director of the employee benefit resarch institute, took a look at battered 401K plans and estimated what it might take to return to pre-crisis account balances."
"If that market slows to a four percent return, getting back to 2008 levels could take a painful five years and nine months, Vanderhei says. Thats a lot of time, especially for people who have only a handful of years left before retirement."
What if the stock market remains volatile, like the last 10 years, what if the market ends up flat, with no real gains? That is why investors need to know about additional options besides just stocks and stock mutual funds. Are you aware that there are several options you can use to generate a guaranteed five to eight percent monthly income for life? Remember knowledge is power.
