How to Keep Cash Secure in Turbulent Times - MoolahMore App
The standard recommendation for any investment plan that has an appropriate stock market, is diversified, and has a turnaround time that matches your risk tolerance and long-term goals is to hold steady. Do not let worry cause apprehension, which can lead to panic. Selling equity to avoid further paper losses may be appealing, but it grants emotional control over the investment strategy.
Contribute to your 401(k), IRA, Roth IRA, and other investment accounts on a regular basis if you are nearing the end of your financial life. Save your money for times when the financial markets are in turmoil. Because stock prices are low, each contribution dollar buys more stocks.
This method of saving a fixed amount of money over varying time periods is known as dollar cost averaging. With it, your actual long-term price per share falls below the average price per share. That is, indeed, double-speak. Cash management and proper liquidity management are the keys to keeping your cash secure during turbulent times.
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