ThinkAdvisor: What Advisors Are Telling Their Clients About “Buying the Dip”": Advisors’ Advice Article

“During steep market declines I first recommend my clients review their goals. For their short-term goals I would not recommend adding money to the market, because they may not see the market recover by the time they need those funds. For their longer term goals, I tell them that now is a good time to invest, because they likely have enough time to grow their money significantly by purchasing investments at a discount.

I first recommend that they continue to dollar cost average money into the market every month, which allows them to continue to purchase at more and more of a discount as the market goes down. They may also choose to take the risk of putting a lump sum of cash in at once, hoping they purchase investments at the bottom of the market cycle. If that is the case I remind them that the chance of hitting at the perfect time is extremely difficult, so be ready for those funds to continue to go down before coming back up.”

- Leland Gross, CFP, founder, PeaceLink Financial Planning LLC

You can read the full article, and the advice from other advisors HERE!