How Bear Markets Can Help Grow Savings

Bear Markets Do Wonders for Retirement reports that people who begin investing during bear markets get better returns than those that begin investing during bull markets. Those that start investing in bear markets benefit from being able to buy at low prices at the beginning. The early investments then rise significantly when the next bull market occurs. In fact, those that began investing during bear markets do about twice as well as those that started during bull markets.

Thus, people who don't need the money for many years are in a great position to benefit by contributing to their retirement savings now. In our family, our five year old daughter is in the best position to benefit from this bear market, since both my spouse and I are retired. However, for her, we are focusing on her college account instead of retirement savings. Thus, in spite of market losses in the past year, we continue contributing to college savings accounts and kept them invested in stocks. Hopefully, we will benefit from this disciplined savings and investing, when she attends college 13 years from now.

For more on Crossing Generations, check back every Thursday for a new segment.

This is not financial, investing or saving advice. Please consult a professional advisor.

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