The chance of a lifetime?
Question: Glen asks if he should borrow a small sum of money to buy stocks. It's time to be bullish in the market, he says. Dave says otherwise.
Dave Ramsey's advice: It's a time to be bullish, but not foolish. Buying single stocks is ultra-high risk, and borrowing to invest in anything increases your risk tenfold. Never borrow to invest. When you do invest, don't invest in single stocks. Do it in good growth-stock mutual funds.
I enjoy your show and agree with your approach.
I question your advice that people should not buy LTC insurance until they are 60. If that is true, then most people with neurological diseases such as MS, ALS, Huntingtons Disease, and Parkinsons would be ineligible to protect themselves, because symptoms often occur before age 60. Aren't we suposed to protect ourselves against risk?
I have the resources and tools with the
experience to determine the value of real
estate at certain economic times but I am
investing in a government matching 401k type
retirement savings account and my portfolio is
diversive with a portion of my funds going
into a secure garuntee fund and the remainder
going into risky funds. I have took a $10,000
dollar hit and it keeps dropping everyday. What
should I do. I have approx 8 years before \
retirement.
respond to Mark. I think we must be investing
in the same 401k type retirement account. I've
just moved my current balance and future
contributions to government securities. I know
I've locked in my losses ($10,000 in the last
month and $30,000 in the last year) but with
only about 10 years before retirement I think
I should focus on maintaining what's left.
Thanks very much for your personal advice. I am
a federal employee and invest in the thrift
savings plan. The L-2020 fund stocks have dropped
approx $3.00 per share in the last month. Hey
Dave I did finish your class at our church and
We have one more loan and we will be debt free.
Mark Ledford
As for Dave's advice towards individual stocks, I just wish I could take all my mutual funds and invest them in individual stocks. My mutual funds (401k) are down 32-40% from when I first started contributing 3 years ago, my individual stocks are only down about 5%. It's not for everyone, but I come from a family of smart investors.
Once again, stay in, don't sell anything (unless the thing your investing in goes bankrupt), it'll all turn around within 5 years and we'll be back, or even higher, than before.
I was thanking Ken for his personal advice.
After I posted this opinion I thought about the
whole situtation on my stocks. I figure I am
buying more shares with my investment right now
and when the market rebounds I will benefit but
if I move to a secure fund than it would take
me forever to recooperate what I lost and to
make more because the secure funds pay very low
profits. I appreciate your response and this is
what I am going to do. I am going to ride it out
hoping we do rebound. Nothing is definite in
life so it is a gamble.