Recession or Not, What Should I Do With My Money - Fox 2 News Headlines

George Wells, President and Founder of Auburn Hills-based wealth management firm Legacy of America, Inc. says that things aren’t looking that great as we approach the last few months of 2011.

Some folks in Michigan are hearing this term “double dip recession” and are thinking — did we ever get out of the recession?

Michigan has inherently been the first to fall into recession and the last one out of it due to our manufacturing base;.

As a nation, the recession technically ended more than two years ago, but unfortunately many folks have still felt the ongoing uncertainty of our economic climate due to lack of employment and volatility of the stock market;

Right now, we are seeing magnified activity in every area of stock market—and for most folks that means a downturn in their retirement savings;

What are the biggest mistakes you see folks make today in these uncertain times?

Timing the market – leads to an extreme consequence. Big mistake:

• Speculation drives markets further in each direction;
• Failing to understand the macro environment – many factors affecting the price of the stocks that have little to do with the stock itself.

What should folks be doing who are looking at their assets and retirement savings dwindle month to month?

• Prudent asset placement is more important today than ever before;
  
• We are living in the new normal – old “somewhat risky” today is “quite risky"

• Put the money were it is positioned to do what it needs to do for you. This is based on age and lifestyle needs.

• Today’s conditions have presented an increased complexity—more of a need for a “second opinion” than ever before.

• Understand the method of neutralizing downward fluctuations.

• Employ more complex strategies - Can’t just buy “good American” companies;

What do you think is ahead?

More market volatility is expected; we have not reached the end of this uncertainty. I think we’ll see a slow uptick in jobs; companies are now doing more with less; Can’t count on on government—we’ve got a high debt that hasn’t been fixed, so we’re putting off the inevitable, which is a correction.

More at legacyofamerica.com