7 On Your Side: Is The Record Dow Increasing The Money In Your Pocket? - KLTV.com - Tyler, Longview, Jacksonville |ETX News


7 On Your Side: Is The Record Dow Increasing The Money In Your Pocket?

It was in the first hour of trading Tuesday morning the Dow cracked the 14,000 mark. But don't start seeing money signs just yet.

"Just because it's all over the news, that in and of itself doesn't necessarily mean you need to buy or sell," says Jack Jones with Focus Financial Group.

Jones and Focus Financial Group President Don Cutler gave us the 101 on what this means to you.

First, you should understand what the Dow Jones Industrial Average is. It's made up of 30 companies, the largest in the U.S.

Unless you have a stake in these major players the Dow only serves a limited purpose.

"It is the predominant index used because it's the oldest index. It's the easiest one to try to allow us to understand what is happening in the market," says Jones.

There are several other indexes besides the Dow made up of thousands of companies that consumers can invest in.

If the Dow is up other indexes could be down and vice versa. Your best bet, vary your investments.

"The more you can spread them out, the more you diversify, the wider your safety net to make sure that if one particular company, industry, sector has a difficult time then there are going to be other areas out there to support that overall investment," Jones advises.

Cutler adds, "Most of our clients and what we recommend for retirement plans is enjoy the ride. Don't be involved in trading activities so much a you are enjoying the ride along the way."

That ride will have its up's and down's...and days like the one on Wall Street Tuesday is a wake-up call to start investing early to have a long and happy retirement.

Focus Financial Group also says it's seeing an increase in global investments. Especially in the last two years.

Christine Nelson reporting. cnelson@kltv.com

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