Dean Hess wrote a financial advice piece that appeared today in the San Francisco Chronicle. He says that the $800b (actually closer to $900b) stimulus package won't help create wealth if it's made of pork and unnecessary infrastructure projects.
Hess provides sound advice on how to weather the current financial crisis: if you can wait ten or more years until retirement, there's no reason to shun the stock market--to the contrary, it consistently outperforms lower-yield government bonds over the long term. However, if you'll need your money sooner, Hess recommends investing in lower-risk assets.
Look at time horizon for investments
Sunday, February 8, 2009
Today's financial upheaval is a roller-coaster ride, with one exception - the place we end up may not be near the place we started. This uncertainty accounts for the unsettled, sick-to-your-stomach feeling you get every time you look at your 401(k) or your children's college-savings account. And this ride may be a lot different from other rides we've taken.