Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management. Welcome back, David.
David Nelson:
Thank you very much. Appreciate it.
Brandy Auterson-Hurst:
We often hear about how important the stock market is, but how does it impact the average person’s finances?
David Nelson:
Yeah, it’s a really good question. Historically, when people think in terms of net worth and building net worth, I think they focus on the residence, their home, as the primary investment. And what we’re seeing is that the stock market is playing a bigger and bigger role as far as people’s net worth. And more and more people are putting money into 401k plans and IRAs and the lion’s share of those monies are finding their way and going into stocks in some form through mutual funds, what have you.
It’s really, really important, again, looking at that type of data, to focus on, “How do I get to where I want to get?” And so the chart that I have today is a really cool chart, I think. And what it’s looking at is the difference as far as a net worth, as far as how it’s growing, hopefully growing for most people, in comparison to the stock market.
And what you see is the lines are pretty much in sync with each other. And so again, what it’s basically saying is that historically, going back long periods of time, real estate and primarily your resident was really the focal point. Today, it’s 401k plans, it’s IRAs, which primarily are made up of stocks. And so subsequently, the stock market becomes a really important piece to most people’s puzzle as far as their net worth is concerned.
Brandy Auterson-Hurst:
Okay, so what does this mean for investors as we look ahead?
David Nelson:
Well, I think a tactical approach, which is a fancy way of saying just that you don’t put your money in and you hope that things work out, but you’re actually looking at trying to figure out times to be in and times to be out should be a bigger and bigger and a more important skillset as far as the people should look to as far as going forward.
Brandy Auterson-Hurst:
All right, David, thanks for joining us today.
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Indices mentioned are unmanaged and cannot be invested into directly.
This video includes a paid appearance.