Wealth Advisor: Keep 401k stock investments - WXOW News 19 La Crosse, WI – News, Weather and Sports |

Wealth Advisor: Keep 401k stock investments

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ONALASKA, Wisconsin (WXOW) – The stock market may have taken a breather Monday, but it's been at an all-time high recently, with the New York Stock Exchange setting a new record almost every day.

Brent Welch, wealth advisor at Welshire Capital said the market is up 111 percent since the recession.

It's because people are putting more money into the economy, Welch said, adding the boost is a result of an improving business sector and dropping unemployment rates.

But Welch said people are pulling more money out of stocks and when it comes to a 401k, it's smarter to stay with stock investments over the long run. Even if the stock takes a few dips.

"Don't panic. Keep your money invested," Welch said. "I think it's going to pay out well for you in the long run. I mean those that we've observed who have kept their money there, kept it invested in stocks, have rebounded back, are the happiest today."

"Those who pulled their money out in 2009 and they're still wondering what to do, are pretty disappointed because they lost 30 or 40 or 50 percent of their investments," he added.

Welch's tips for successfully investing money include investing in dividends. Even in a flat stock market, a person can still turn out dividends, he said.

Welch also suggests investing in "defensive" stocks. Those, he described, are stocks that include consumer staples, such as toothpaste and soup. Even if the market drops, people will still buy "defensive" items, Welch said.

More youth are investing in 401k plans and Roth IRAs because they're learning the importance of budgeting and investing in grade school.

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