Not all financial consultants sold on doom and gloom
by Gwen Allen
As the economy dangles in an official recession, the â€œmattress savings and loanâ€ is gaining popularity in an unofficial way.
Bob Lorenze, a Genworth Financial registered representative of Morrison and Associates in St. Charles, said there’s no reason to hide your money where you sleepâ€”just yet.
â€œPeople are thinking that this time it’s (the economy is) different or worse, but I don’t think it is,â€ Lorenze said. â€œThe market has cycles, and there have been many big dips (like this) in the past. The media is feeding into the problem and I think people should stop watching TV (news coverage) and quit worrying about it.â€
His opinion may seem unfathomable as foreclosures are up, millions are unemployed and industry after industry begs for bailout money, but he is confident and said, â€œIt may stay down maybe a year or two, but eventually it will recover and possibly get better.”
Taking this into account, he said now more then ever people should be investing for their future rather than hiding their money.
â€œThe problem is people do the opposite of what they are supposed to do (financially) whenever the economy drops,â€ Lorenze said. â€œThey buy (stocks) when it’s high and sell when it’s low, because they get scared.â€
Unless a person is retired or about to retire, he said a poor economy could offer a favorable return down the road.
â€œIf you have the money (above six months worth of savings) and the time (five to 15 years), right now is really the best time to buy,â€ Lorenze said. â€œIt doesn’t make sense to pull money right now, because it’s only a loss on paper. Once you pull it you lock in your loss.â€
Though he said any plan to save, invest and pay off debt is good in any economy, there are no cookie cutter solutions.
â€œThere’s really no rule of thumb, because each individuals circumstance is different,â€ Lorenze said.
So whether you are unemployed, gainfully employed, 60 or 20 and in your first job, he said the best advice is to seek advice from a professional.
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