“Instead of waiting for a market correction and then trying to figure out whether it’s a good time to reinvest, develop a plan for buying stocks in advance, says Spuds Powell, managing director of Los Angeles-based advisory firm Kayne Anderson Rudnick. Leaving the decision until stocks are plummeting is a bad idea, because many people become paralyzed by worry that the bottom will be a lot farther down, he says.”
“A solution used by Mr. Powell of Kayne Anderson Rudnick is to design a portfolio, or a portion of a portfolio, that distributes a steady flow of income each month from a combination of interest payments and dividends. “When people see that regular stream of income, it goes a long way toward eliminating the anxiety some have about the market,” Mr. Powell says.”
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