JACKSONVILLE, Fla. – With an unprecedented 1,000 point decline to start the day, the stock market sent people across the world and here in Jacksonville into panic mode.
"The first thing comes to mind is that clients are going to be very nervous about what they are seeing, about what they are hearing," Titus Pittman with Genesis Financial partners said.
Pittman is a certified financial planner at Genesis Financial Partners, and many of his clients have 401k plans through him, and he said that depending on where you are in your life, about to retire or just starting to invest, this stock market flux affects people differently.
"I would say that if you are closer to retirement, let's say two years out, these dollars should be more in a conservative account and even somewhat in cash, because you're getting ready to use those dollars for retirement," Pittman said. "For those who are beginning to start working or investing into the stock market and have a longer time horizon, I would say this is a great opportunity to now take advantage of a decrease in the market."
Pittman said 401k's are historically diverse, and money is spread across broad investment sectors. But now is a good time to research your overall financial situation and have a financial plan in place.
It's not however a good time to sell, Pittman said, because that could do more harm than good.
"Quite often, the market rebounds, and they are either afraid to get back in the market or they wait until the last minute when the stocks are already over value," Pittman said.
So what should people do?
Pittman said that people need to take a breath and evaluate their investments and intentions.
"I would ask myself what my time horizon is based on. If my goals and objectives identified have changed. If they have not, you should stay the course," Pittman said.