Early bird tickets for Baltimore’s BEST party on sale now!

Taking that profit now might prove quite costly


WANT TO take your stock market marbles and go home? Not so fast! " 'You'll never go broke taking a profit' may be the worst advice ever given," says Better Investing. "Sure, you'll never go broke, but you'll never get rich, either. Don't sell your winners prematurely while keeping your losers. The best investments usually have 'shelf lives' longer than six or 12 months."

Fortune magazine points out: "If you invested $10,000 in the S&P; 500-stock index just before the 1990 bear market and kept investing $100 a month, you would have $62,000 in eight years while someone who fled the market after a 10 percent drop and invested $100 a month in T-bills would have only $24,000."

KEEP WHAT'S YOURS: Are you considering changing jobs? "Don't let that decision jeopardize your retirement savings," warns Working Woman.

"The biggest mistake people make when they change jobs is spending their retirement money. If it's less than $10,000, they think it's not worth hanging onto. But over a career, $5,000 tucked away by age 30 can turn into $74,000 at 65, assuming an 8 percent annual return."

Pub Date: 1/22/99

Copyright © 2019, The Baltimore Sun, a Baltimore Sun Media Group publication | Place an Ad