Coronavirus: avoiding investment insecurity

(NBC News) – With the coronavirus outbreak taking a heavy toll on financial markets, experts warn this isn’t the time to sell.

Caleb Silver of Investopedia says this is a good time for research and patience.

“Let asset prices settle and you’ll get an opportunity to get back in, rebuild your portfolio and even add to it,” he advises.

Silver also says for some investors it may be a good time to ignore a 401K’s losses.

“The reality is you lost that money on paper,” he explains. “You don’t lose it until you sell.”

Still, worried investors willing to cut their losses have an option.

“You can do what we call tax-loss harvesting; sell some of the stock that you’ve owned at a loss, if you are at a loss and use that money at the end of a year to reduce your taxes,” Silver says.

Read more: https://cnb.cx/3aTjaAo

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