With the financial markets roiling, what kind of investor are you? It seems that everywhere I go people are commenting on their future – their future as it pertains to retirement, social security, and life expectancy. Naturally, this is a good time to share information with you from The Hartford Annual Report:

Three basic types of investors….

Nervous: Back in March of this year, the New York Times reported that volatility in the S&P 500 Index stood at a 70-year high. That kind of market turbulence can turn even the most seasoned among us into white-knuckled investors. But take a longer-term view, and a different picture emerges. Based on 10-year holding periods from 1927-2007, stocks were up 99 pecent of the time. From 1976-2007, the stock market has averaged 12.8 percent a year. But if you missed just the best 50 days over those 30 years, your average annual return would have fallen to just 5.8%. There is tremendous value in having a financial professional at your side.

Conservative: Depending on your unique situation and needs, fixed-income investments (CDs, money market funds, t-bills) can be appropriate. But these “conservative” investments rarely generate enough return for long-term goals. Factor in inflation and income taxes and your returns can be nearly negligible. That’s not to suggest you should avoid fixed-income investments. They have a place in many portfolios. But just how prominent a place is a discussion you need to have with an investment representative.

Opportunistic: Some investors view temporary market declines as a chance to invest while equities are “on sale.” However, even seasoned investors may need a little incentive to “buy on the dip.” Furthermore, trying to time the market can be a real challenge. You have to guess right twice: once when to get out, and then when to get back in. So, if you see the current environment as an opportunity, but need a little incentive, talk to your investment representative about ways of easing into this market. Not by market timing, but by perhaps “dollar cost averaging”, systematically investing a little money at regular intervals. Funny thing about market downturns: They can turn into market upswings with little or no advance notice.

Continuous or periodic investment plans neither ensure a profit nor protect against a loss in declining markets. What kind of investor are you? I should hope one that seeks financial advice from an expert!

Joan Mason is a University of Georgia Cooperative Extension agent in Sumter County. She can be reached at 924-4476.