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Subject:  Re: Feeling lost, need advice! Date:  2/18/2012  1:32 AM
Author:  DolonAltekar Number:  70162 of 88772

I think you need to look at history to gain some perspective. If you had stayed invested during the most recent crisis, AND, kept regularly adding to your portfolio through the "crash" you would likely be way ahead right now.

Lots of people panicked way worse than you and sold at the bottom and have still to get back in to the market. You should feel good about that.

You need to be able to sleep at night, but you also need to learn from history. Putting all your money into "safe" investments is likely worse for your financial health since those types of investments will likely erode your buying power slowly over years. You should choose an allocation of a percentage of your monies to fixed income and a percentage to stocks. Buy cheap index funds from some place like Vanguard. Set up automatic withdrawals every month from your pay and then don't look at the statements every month if the fluctuations scare you. Once a year or so rebalance to match your target allocation.

Live your life and don't watch financial news. Just like with any new these days they sensationalize everything. Those people have such a short term focus that it's crazy.
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