This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Financial Advisers Urge Investors to Chillax

Turbulent markets have spooked investors, leaving them with pressing questions about their financial future. Here are some of the most common, along with answers from two financial advisers who have received their share of calls from concerned clients.

Could I lose everything?

It's highly unlikely that the stock market will head all the way to zero. "Gross national product and the Dow Jones Industrial Average track each other," says Cliff Michaels, chief investment officer at Institutional Investment Advisors Corp., a New York-based independent financial planning and investment management firm. "Most of the companies on the Dow are multinational. If you consider global population and demographics, it's just a matter of time before they start to expand again."

In short, if your investment portfolio is well balanced with a mix of equities and fixed-income investments that is appropriate for your time horizon, the chances are slim that you'll lose everything. Of course, if you panic and sell everything at the bottom, you'll probably take a serious financial hit.

Should I stop contributing to my 401(k)?

No, even though your balance is probably dismal. Rather than focusing on that number, think about the bargain you're getting on the shares you're buying with current contributions. "You have the opportunity to invest at lower levels than we've seen for a very long time," says Michaels. "You can buy a lot more shares with your money now than you could just a few years ago."

Maintaining your 401(k) contributions also means you're also taking advantage of dollar-cost averaging. By investing a fixed amount at set intervals, "you're guaranteed to buy fewer shares when they're expensive and more when they're cheap," explains James Tissot, president of the New York chapter of the Financial Planning Association.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CVX $102.18 0.00%
JNJ $112.08 0.00%
KO $44.80 0.00%
MCD $126.49 0.00%
T $38.82 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs