There has been a lot of talk lately about the stock market and the correction/crash that it’s currently experiencing. I’ll be honest. I just don’t care.
Why don’t I care? I’m only 26. I’m not invested heavily enough that the dividends from the stocks that I own make up any serious part of my income. I contribute regularly to my 401(k). That means that I can take any losses in value that may occur. That also means that while everyone is worried about the drop in value for their stock, I’m rejoicing. I’m buying stock at a discount!
History shows that the stock market will rebound from anything that gets thrown at it and will eventually be all that much better for it. And in the immortal words of the Rolling Stones, “Tiiiiiiimmmmee… is on my side. Yesss it isss!” (just be glad you only had to read that and not listen to me sing it.) I’ve got just under 40 years left before I really need to worry about what the stock market is doing.
[tags]invest, stock market, stock market correction, retirement, 401(k), retire, IRA[/tags]
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You are right on with your insight. I’m 25 years old and my financial planner (a good friend) is 26. Both of us know that what happens now will have little to do with us in the future.
Subsequently, I am investing like crazy in energy funds through Roth and Solo 401k accounts. Sure it’s risky and volitile for the short term… but what do I care? The demand for energy will never go down, it will only cross into other genres, such as alternative fuels.
By the time we are 65 all the thousands of dollars we are putting away will have grown into millions.
Think of all the people who withdrew their money in the stock market crash of ‘87. How much would that same money be worth now if they would have left it in? The market is the bloodline of our Capitalistic economy. You don’t loose money until you pull money out. Otherwise, the money is still out there and WILL come back. Even with a terrible crash, the markets WILL go on!
I think our generation is more savvy when it comes to handling money than our older counterparts. We’ve seen the effects that not handling your money can have and we don’t want to go there. We know darn well that the government won’t be there to support us later in life. We know that ultimately it is up to US to define our own path to retirement.
Now lets just hope the generation in power doesn’t destroy the earth before our generation can reach the helm.
I am 22 and I am almost praying for some stock market downturns, so I can buy mutual fund shares on the cheap! I really wish I had started investing in college (2001-2005) so I could have bought in when it was cheaper. But we already have so much time that the little blips don’t matter.
A friend of mine (who is 27, by the by) asked me about a week ago what I thought about the sudden downturn of the stock market, apparently there was a noticeable one-day drop for some reason. And I said, “why should I care? do I day trade? nope, so I don’t care, wake me in 30 years. I will just dollar-cost average out of stocks like I did to buy in, so the day to day finanglings don’t matter.”
Chris, I don’t think your generation is more savvy about the basics on average than my generation was at the same age. I’m 41 now. Most of my peers were pretty clueless at your age. Many of them still are. I think the same has held true for each generation. The advantage you have is that it is easier now to find other people with a clue and compare notes. I think what’s happening is that the same small percentage of us who are motivated are finding more of the information we need and finding it faster. The average is going up because the people at the upper end of the curve are improving their skills earlier, faster and more.
You make a goof point, and I agree with you.