Experts To Skittish Investors: Think Long Term

BOSTON -- Financial experts tried to calm people's fears about their dwindling 401(k)s on Monday with advice to think long term.

'Think Long Term' Experts Tell Investors

"I lost a lot of money, but I have a long time until retirement, so I'm not worried about it," said Peter Herrin of Sudbury.

"I'm about three years away, but I may be working longer," said Ellie Sheeley of Wareham.

Depending on how close you are to retirement might have a lot to do with your outlook on your third-quarter 401(k) statements and your knowledge of the history of the stock market.

"We had the crash of '87; we had the scare of '98; long term capitol, '79 to ' 82 was awful -- everything you bought went straight down. Markets (will) return to their long-term return levels," said John Osbon of Osbon Capital Management.

"We actually used this as an opportunity to buy some stock. It's a great time to buy at the bottom. Right, you buy low and sell high. We used this as an opportunity," said Nora Herrrin of Sudbury.

"It's always a good time to buy and invest for the long term," Osbon said.

Certainly, Monday's news of the market record one-day point gain didn't hurt either.

"The turnaround today is very encouraging -- whether or not that's a one day wonder or if that is indeed something that as time progresses gets better and better. Hopefully that's the stability that everyone is looking for," said Paul Hansen of Mansfield.

Osbon said the key is to take control of your own destiny.

"What are the winners going to look like after all this turmoil is over? They're not going to have a lot of debt; they're going to think long term; they're going to be diversified -- sounds like what a typical 401(k) investor should be," Osbon said.