Investing

Reader Question: I’m a little worried about investing in the market due to volatility. Are there safer investments?

 

dave_ramseyYou’re right; the market is volatile. It’s not a volatile as some things, but you have to remember that anywhere there’s money to be made—including long-term investing—there are ups and downs.

For instance, I like real estate. It’s not as volatile as the stock market, but there are no guarantees. We experienced that big dip over the last few years, and it was probably one of largest dips ever in the real estate market, except for the Great Depression.

Aside from real estate, I also like mutual funds. When it comes to these, one way to smooth out the volatility of the market is through diversification. That means you spread your money around instead of investing in one or two things. That’s how I handle my mutual funds, and I recommend others do the same. Spread your investments across these four types of mutual funds: growth, growth and income, aggressive growth and international.

There are no guarantees when it comes to long-term investing. But diversification can help make the ride a little bit smoother!

 

 

Dave Ramsey

Dave is the author of The New York Times best-selling book Financial Peace. He is also the host of the nationally syndicated The Dave Ramsey Show, and is a regular guest on television. All of his financial counseling is based on biblical truths. You can hear Dave from 9 a.m. to 11 a.m., weekdays online at www.daveramsey.com. Send your questions toaskdave@daveramsey.com. He resides with his wife Sharon and their three children, Denise, Rachel, and Daniel, in Nashville, Tennessee.

Advertise