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When Should You Take Your Money Out of the Market?


Do you remember the tech bubble bursting in 2001? Or perhaps you remember more clearly the sub-prime mortgage bust in 2009? Since the turn of the century, we have already had two instances where the stock market has taken a pretty severe dive, and based on what I’m seeing, it will most likely happen again.

Related Article: The Next Stock Market Crash Is Coming

Some people think our world is going to change so dramatically that they are not only trading in their stocks, but they are also trading in their currency for gold coins, long-lasting food, and equipment that will help them survive without any power or water. While I suppose this is a possibility, I am not assuming that our world will change to that extreme.

I do believe there is yet another crash coming in our stock market, which is why I am not putting all of my retirement money into a 401(k) or Roth IRA. While I am still investing some, it is only for diversification purposes.

When to Take Your Money Out of the Market?

If you are into your 50s or 60s and you have the majority of your savings in your retirement fund, I would strongly suggest that you create another option in the near future. According to all of the experts, our market will most likely take another hit by 2016 (some even think it will be earlier). Now, the last thing you want to do is freak out and withdraw all of your money from your accounts. That would cause you to pay a high rate of tax as well as a penalty for early withdrawal. Instead, slow down your 401(k) investment and begin diversifying your investment.

Diversify Into What?

When most think about investing for the future, they immediately think about the stock market, but there are a countless number of investments that one can make besides buying shares of stock. My personal favorite is real estate. If you save up just $60k, you can begin investing (in some lower priced areas) in your first rental property. When you purchase the property, not only will your investment most likely go up in value over the years, but it also provides you cash flow!

Another investment could be in precious metals. Yet another could be in collectibles or rare pieces of art. If there is a demand for a particular item out there and you know how to attain it for less than the market value, you might just have yourself a fantastic investment.

With the market’s assumed dive coming soon, you should really consider some other options. What are some investment ideas your have thought of besides investing in the stock market?

Investing Money


My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.


  1. +1 for real estate. However, I would pick a property that is still cash flow positive including the costs of a property management firm. It cuts into your return, but makes the cash flow completely hands-off as they’ll handle the maintenance, tenants, etc.

    Peace of mind? Priceless…

    • Plus, this would leave you more time to invest in the next passive income source. Thanks for the comment Jack!

  2. It is my belief that we shouldn’t always buy and hold. Caveat Emptor: If one is properly diversified, they can still achieve continued success and wealth.

    • I agree Chris. One should have their money in multiple places and these investments should be reviewed at least once a year for their effectiveness.

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