The theme this week on the Retirement Quick Tips Podcast is: Don’t Just Sit There. Do Something! If you can do something proactive other than just sitting on your hands and hoping that the markets turn around soon, you’ll be better able to get through this difficult time while keeping your long term investment strategy intact. 

Today, I’m talking about one of the smartest and at the same time toughest things you can do during a down market - put your cash to work. With inflation so bad right now, cash is dead money, and bargains exist with high quality investments. It’s important to be discerning here and be able to tell the difference between a good quality investment that’s been dragged down and will recover, and an investment that will stay underwater when the turnaround finally occurs. I talked about this at length earlier this week when I talked about selling your dogs, so I won’t go into detail here.

But if you’re like many Americans, you are probably holding on to some cash that isn’t earmarked for any specific purchases in the next year or 2, and would be better off investing that. Some of the wealthiest investors in the world capitalize on downturns to snap up bargains to grow their wealth. 

Benjamin Graham once said: “The intelligent investor is a realist who sells to optimists and buys from pessimists.”

If you are holding cash, now is a great time to start putting it to work. Let’s say, for example, that you have $100,000 in cash or short-term investments that need to be invested in stocks. [Explain DCA strategy].

When you trickle the cash in gradually over many months, you’ll take advantage of market volatility without trying to perfectly time the market, which is a fool’s errand.

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast. 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance