Stocks tumble, now may not be the time to pull your money out

March 2, 2009 11:11:18 PM PST
On Monday, stocks tumbled. The Dow went down 300-points to end at six-thousand-763, and the Nasdaq closed in the red at 55-points at one-thousand 322.Those latest numbers have investors very concerned. The stock market took a big hit Monday, with the Dow falling to its lowest point in almost twelve years.

Fresno resident, Michael Miller said, "It has me concerned, it has me very well concerned cause it's going down so quickly, it was 14,000 and now its below 7,000, it's scary."

Jeanette Bibler said, "Well, I would be concerned that something would happen to my retirement fund, and I wouldn't be getting as much as maybe I'm getting now or any at all, I don't know."

One reason for the slump say financial experts, is the government's plan to bailout insurance giant, AIG by another 30-billion dollars.

The total price tag for AIG's rescue package is about 1400 dollars per U.S. household. Sandy Brown said, "I've been on the phone all day today, I mean literally one phone call, after the next, after the next."

Financial advisor, Sandy Brown says, investors have a right to be concerned. But that pulling money out of the stock market is not right for everyone. He said, "A general rule as far as things are concerned is if you have longer than a seven-year time horizon, then its one of those things that you may wanna wait the storm out right now."

His advice, if you're nearing retirement age, be conservative with your investment. And, if still have another twenty years to go, Brown said, "I am still a big advocate of putting the money away on a tax deferred basis, meaning that the money you're putting away into an ira or a 401 k, those all lower your adjusted gross income which means you will pay less taxes on that dollar amount."

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