By Craig Erwin, Ph.D.
Photo by Lil Artsy on Pexels.com
The news can depress or excite you. Paying too much attention to it may even make you sick. And allowing the news to drive your decisions can result in one disaster after another. For instance, when the news is awful, you might conclude that it makes no sense to go to work, have children, or even get out of bed. On a good news day, you might decide to buy a new car or take a tropical vacation.
There is always good news and bad news. How you interpret it may affect your emotional or mental state. You can always find news stories that make you believe the world is ending, but you can also find stories that make you feel like flying to Paris and falling in love. So, let the news entertain and inform you, but be wary of letting it influence important decisions.
When planning for retirement, it is best to ignore the news, especially financial and economic news. The financial and economic news is provided by journalists who are trying to attract eyeballs and sell ads, not by trained, loyal experts who want what’s best for you. Journalists sensationalize and pander. If they sense that a lot of investors are nervous, they write articles about how bad things may get. Journalists can’t predict the future any more than you can. And the news is often bleakest just before an economic recovery or a bull market begins.
So, don’t worry about whether the stock market or economy are ready to crash or soar or whether it’s the right or wrong time to start investing. Let the economy and the market do what they will. All that matters is that you save aggressively and invest. When you reach retirement age, that’s what will have made the difference.
Do you let the news affect your decisions? Has it affected your retirement plans?
For more information on making financial decisions and preparing for retirement, click on the following links:
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