The stock market had one of its best years ever last year. Clients (myself included) are not so afraid to open their brokerage and retirement account statements any more. Despite the returns that people realized last year, few seem to be jumping for joy. Sometimes it’s hard to get excited about being back where you started several years later.
What are your options?
The stock market is not inherently a bad place to be. Like every investment, it has a risk-reward trade-off. You must decide how much risk you’re willing to take. In the last several years, many people have re-evaluated for themselves what that means. First things first: figure out what kind of investor you are.
Then, consider other options besides the stock market if you can. If the better part of your savings is in your 401k at your employer, you’re most likely stuck with those investment options. But if you have cash on the sidelines or you have IRA monies from previous employers, you have more options. People think of the stock market because it’s what most publicized and most accessible online. However, there are other pretty interesting and pretty great options in the insurance and real estate worlds where your returns might be greater and your risk perhaps lower. You might consider these other opportunities.