Financial Experts Advise Consumers Not To Panic
FORT WORTH (CBSDFW.COM) – During the latest dizzying days of stock drops and slides, Steve Blankenship has found himself glued to overwhelming amounts of information.
“Human emotions will take over eventually, even if you’re well trained and know the right things to do,” he said. “You can’t get away from the fear, and it will hit.”
With three kids at home and his own business to take care of, Blankenship is one of many thinking about how to take care of his money.
The instinct may be to put the money under the mattress right now, but experts are recommending the exact opposite.
Mike Mills, a financial planner in Southlake, is instead giving clients familiar advice: Don’t get emotional, stick with your plan, and put more money in, taking advantage of the downturn by buying things cheap.
“Rarely is selling after you’ve been punched in the gut, or feel like you‘ve been punched in the gut, result in a lot of gains,” he said.
Mills said adding money during periods of volatility ends up working in your favor when stocks recover.
Blankenship agrees with the experts. But he should know: He is one of those experts. Blankenship is a financial planner at Heritage Planning in Grapevine.
More specifically, he says, don’t get greedy and stay away from individual stocks, and with economy sectors that can take unpredictable hits.
He’s telling investors to focus on broad funds by following the big indexes that are more stable and likely to go back up.
“You take out the home run hitting ability, but you also take out the strike out ability as well,” he said.