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Originally posted at Christian Post January 22, 2016.
So far this year, the stock market seems very volatile. My husband and I have some stocks and certainly in most retirement accounts including ours, stocks play a role. I’ve been concerned about the impact of China’s stock problems, which have been much in the news, and I’m wondering if you have any advice on how to invest in the stock market and whether it’s wrong to be there at all. As a timid investor, is it safe for my family to put money in the stock market?
Struggling with Stocks
You are not alone in wondering whether the stock market is a safe investment these days. Whether it is the recent turbulence caused by fears over China’s credit bubble or the next one to come, there will always be uncertainty when investments are involved. Therefore, when it comes to handling investments, my first and best advice is to educate yourself. As it notes it Proverbs 4:7, “The beginning of wisdom is this: Get wisdom. Though it cost all you have, get understanding.” (Emphasis added.)
Before you decide how and even whether you should be involved to be in the stock market, consider this:
First: Understand your Finances. Evaluate your own personal balance sheet, which includes your income, your assets, your obligations (your bills) and your debts. Too many of us are uninformed about our true financial picture. In the Proverbs we are advised: “Be sure you know the condition of your flocks, give careful attention to your herds; for riches do not endure forever, and a crown is not secure for all generations.” You can think of “a crown” as a job, which may end, and the flocks as savings and investment as livestock had value. Even kings need to know what’s in the bank.