Nearly 40% of investors who took money out of the markets regret it

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Many investors who took money out of the stock market in the past year now regret their decision.

According to a study by MagnifyMoney. Of this group, 40% said they would have liked to keep their money invested. The online survey of more than 1,000 US consumers was conducted April 15-20.

The survey found that younger investors were more likely to panic sell. Nearly 70% of Gen Z investors have taken money out of the market, along with 57% of millennials. At the same time, 49% of men sold stocks due to a negative event, compared to 24% of women.

“Time is the ultimate weapon when it comes to investing,” said Matt Schulz, chief credit analyst at LendingTree. “This gives young investors a huge advantage over their older counterparts.

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“Unfortunately, however, Gen Z and Millennials risk wasting that advantage if they pull their money out of the market when times get tough.”

The best decision for young investors is to stay focused on the future and leave their money where it is, Schulz said.

“Ride the wave and trust that better times are ahead, because history has shown that when it comes to the stock market, they almost always are,” he said.

Different events scare investors more

Some current events have caused more concern among investors, according to the survey. Overall, inflation tops the charts as the thing that has riled US consumers the most over the past year.

Americans are also worried about the coronavirus pandemic, economic policy and the war between Russia and Ukraine.

Emergency savings and the amount of money people are willing to invest have been hit hardest by current events over the past year, according to the survey. People have also been rethinking their living situation as property prices have risen and are revising the level of risk they are willing to take when investing.

How to Avoid Regrets

To protect yourself from too many investment regrets, experts generally recommend starting as early as possible and developing a plan for your money to grow over time.

“You want to get started as soon as you can,” said Shelly-Ann Eweka, senior director of financial planning strategy at TIAA. Indeed, with more time, you will benefit more from the capitalization, that is to say the interest earned on your invested money.

Some people may defer their investments to prioritize other financial goals, which Eweka warns against.

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