By Robin Marsh, NEWS 9
High gas prices, the dropping dollar and the stock plunging - it's all giving the economy a beating and putting a lot of fear in our minds. And while there is reason for concern, spending less and saving more is a good idea, but there is no reason to panic.
"That doesn't mean there are reasons to be overly concerned. People hear about bank failures If you got less than $100,000 dollars in a bank and it's an FDIC insured, the government is there to stand behind your deposits. Taking money out of the bank isn't a smart move," Vince Orza, dean of Meinders School of Business.
Orza goes on to say spending less and saving more is a good idea if you have a stable job and your mortgage is in good shape. You really should not be fearful about the economy and do not do something drastic.
General Motors Corp. say they knew gasoline prices would rise and the U.S. market would shift from trucks to car, but they thought the change would be gradual. Instead, gas prices rose 74 cents per gallon from February to May, and pick-up truck sales dropped from 13 percent of the U.S. market all the way to 9 percent.
Consumer spending is actually up, some say largely due to those tax rebate checks, but that's about the only bright spot in a financial storm it seems.
And when it comes to your investments and your retirement, one investor gives this advice:
Look for the stock market to turn around. Money coming out of mutual funds is often a sign that the market will turn around.
Remember stock market history. The market rarely has lost money over periods of 10 years or longer.
And stay the course. I know that these are the times that try investors' souls and separate the speculators from the investors.
Stay the course, make sure your planner and you are on the same page.
And for more information, just go to my blog.