Now that many of you have picked yourself off of the floor after reviewing your third quarter retirement plan statement it's useful to consider what you may want to do in the immediate future with your nest egg.
I'm not a financial planner by any stretch and would never suggest a certain stock to buy, but I think as a CPA I view things through a different prism than a financial planner or perhaps you do.
If you are within 10 years of retirement right now I don't think it's unreasonable to get most of your money out of stocks right now. Some may say that you are panicking but if the market continues to bottom out it's very possible that you will never have a chance to earn that money back.
If you have more than 10 years until retirement I think you should continue doing what you are doing. If one looks at the historic performance of the Dow Jones it's useful to note that over a 10 stretch in any period that the market is up. You will have enough time to make your money back and I wouldn't want to lose out on buying shares of stocks that may be undervalued right now.
Obviously you should talk to your planner and make the best decision for you, but if you have several years until retirement I don't think you need to panic. The economy bounces back. It did after 1987 and it did after the depression and it will this time.
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