Olde Hornet
Well-Known Member
https://retirementplans.vanguard.co...L&ps=0&tab=libraryTab&libView=AllTopics&po=10
Since May 19 the stock market has dropped about 10%. A 10% drop in the value of your own stock holdings can be emotionally unsettling. So what should you do, if anything?
If you have a mix of assets—stocks and bonds—that you chose to help you attain your retirement goals, and if that mix fits your tolerance for risk, then the answer may be that you should consider doing nothing.
There is good evidence that in turbulent market times, doing nothing eventually pays off.
In 2009, after the stock market had lost half its value, 87% of Vanguard retirement plan participants didn't touch their accounts. In fact, between September 2007 and December 2009 only 3% of participants in Vanguard retirement plans gave up on stocks completely.
As a result, between the end of 2008 and the end of 2013 the average Vanguard 401(k) portfolio almost doubled in value, from $56,030 to $101,650. Much of the gain can be attributed to the rebound in stock prices following the end of the recession.*
Since May 19 the stock market has dropped about 10%. A 10% drop in the value of your own stock holdings can be emotionally unsettling. So what should you do, if anything?
If you have a mix of assets—stocks and bonds—that you chose to help you attain your retirement goals, and if that mix fits your tolerance for risk, then the answer may be that you should consider doing nothing.
There is good evidence that in turbulent market times, doing nothing eventually pays off.
In 2009, after the stock market had lost half its value, 87% of Vanguard retirement plan participants didn't touch their accounts. In fact, between September 2007 and December 2009 only 3% of participants in Vanguard retirement plans gave up on stocks completely.
As a result, between the end of 2008 and the end of 2013 the average Vanguard 401(k) portfolio almost doubled in value, from $56,030 to $101,650. Much of the gain can be attributed to the rebound in stock prices following the end of the recession.*