NEW YORK (8/2/07)--You have to have nerves of steel these days to stomach a roller-coaster ride on the stock market. Recent volatility is a good reminder that saving is for the short term and investing is for the long term. What should you do when the market takes a dive? Go back to the basics. Contribute as much as you can to your 401(k); take advantage of the company match so you're in a good position to regain any losses once the market recovers. Keep your portfolio well diversified with a mix of stocks and bonds that match your risk tolerance and that help you ride out market highs and lows. Use dollar-cost averaging: Invest the same amount of money each month to lower your average costs over time (Money.CNN.com July 26) ...
courtesy of cuna.org
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