Will They Ever Be Comfortable?

A recent survey indicates that 52 percent of investors under the age of 31 say that they will never be comfortable investing in stocks. While the majority of the experience by young investors is the recent bear market, historically equities have outperformed bonds and savings accounts. The fear of equities is evidenced by one investor who has not even set up her 401k to receive the company match. One rule of thumb for investments is that you should be able to go to sleep at night and not worry about your investments. While we can agree with this statement, many people worry only about potential losses. Never forget that if you are saving for retirement that you will need sufficient funds available for retirement and we doubt that a one percent return will allow you to achieve your retirement goals and be comfortable in retirement.