Banner
  • Revenue Cycle Management
  • COVID-19
  • Reimbursement
  • Diabetes Awareness Month
  • Risk Management
  • Patient Retention
  • Staffing
  • Medical Economics® 100th Anniversary
  • Coding and documentation
  • Business of Endocrinology
  • Telehealth
  • Physicians Financial News
  • Cybersecurity
  • Cardiovascular Clinical Consult
  • Locum Tenens, brought to you by LocumLife®
  • Weight Management
  • Business of Women's Health
  • Practice Efficiency
  • Finance and Wealth
  • EHRs
  • Remote Patient Monitoring
  • Sponsored Webinars
  • Medical Technology
  • Billing and collections
  • Acute Pain Management
  • Exclusive Content
  • Value-based Care
  • Business of Pediatrics
  • Concierge Medicine 2.0 by Castle Connolly Private Health Partners
  • Practice Growth
  • Concierge Medicine
  • Business of Cardiology
  • Implementing the Topcon Ocular Telehealth Platform
  • Malpractice
  • Influenza
  • Sexual Health
  • Chronic Conditions
  • Technology
  • Legal and Policy
  • Money
  • Opinion
  • Vaccines
  • Practice Management
  • Patient Relations
  • Careers

Let's Hear it For the Bears

Article

Most investors who haven't already given up on the stock market are hoping that the bear will soon loosen its grip and that stocks will return to decent gains. But if you're putting your money into a retirement fund on a regular basis and you're not planning to retire in the next 5 years or so, rooting (just a little bit) for the bears makes some economic sense.

Most investors who haven’t already given up on the stock market are hoping that the bear will soon loosen its grip and that stocks will return to decent gains. But if you’re putting your money into a retirement fund on a regular basis and you’re not planning to retire in the next 5 years or so, rooting (just a little bit) for the bears makes some economic sense.

Investing a fixed amount of cash at regular intervals is what market mavens call “dollar cost averaging.” When the share price is high, your regular investment buys fewer shares. But when the share prices drop, as they have for most of this year, your money buys more shares, bulking up your portfolio and providing you with even greater potential rewards when the market finally turns around. And if your timeframe between now and retirement is somewhere between 10 and 30 years, a market recovery is almost a guarantee.

Many brokerage houses and mutual funds will let you set up an automatic investment plan that takes money out of your checking account every month and puts it into a stock or fund that you choose. You can also opt for a program like Sharebuilder, which lets you specify the time interval for the investment as well as the amount to be invested. Sharebuilder also lets you choose from different types of accounts, such as a regular IRA, a Roth IRA, or an Educational Savings Account, where you want the assets to be held.

Related Videos
Victor J. Dzau, MD, gives expert advice
Victor J. Dzau, MD, gives expert advice