Retirement, investment advice from local financial group

NYSE "Big Board" shows Dow Jones Industrial Average fell 1074 points in first 6 minutes of trading Monday.

(WIVB) – U.S. stock markets sank in morning trading Monday in a wave of fear that circled the globe after a historic plunge in Chinese stocks.

The Dow Jones industrial average fell more than 1,000 points in early trading and the Standard & Poor’s 500 index slid into correction territory — Wall Street jargon for a drop of 10 percent or more from a recent peak.

Although the major stock indexes pared some of the losses that dented investment accounts by midmorning, many investors were still worried and wondered how to react.

Steven Constantine of the Alliance Advisory Group offered the following advice on News 4 at 5.

If someone is getting close to retirement how should they view the sudden slump?9C9486E7E7224A028A33E5BDDDC789AD

Consider diversifying and balancing your investments so you can deal with things such as inflation. Have a conversation with an investment professional to ensure everything is in line with your personal risk tolerance.

What about for people who still have about 20 years before they retire?

Stay invested and manage your investment behavior and understanding retirement investment is a long-term play.

Is the economy strong enough to handle something like this?

It can, and it has before, which is indicated by some of the recovery already today, because some people are getting in and buying. It’s just a cycle; how things happen.

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