海角大神

I鈥檝e heard predictions of the stock market鈥檚 imminent crash quite a few times鈥攆rom those who might consider themselves knowledgeable in financial matters and, of course, from those who would probably not be considered part of the 鈥渋n-the-know鈥� financial club.

I鈥檝e been following investing since my early 20s and have been a practicing financial planner/advisor for nine years, so this type of claim grabs my attention no matter how many times I hear it. It usually goes like this: 鈥淲e talked to so-and-so, and he knows that the market is going to crash.鈥�

Really?

This person聽knows?聽For sure?

Biggest question that I have for that person: When?

Typically, the 鈥渁uthority鈥� spoken with has no experience in these matters (not by profession, certainly); so how come his/her crystal ball works so well and mine doesn鈥檛? Reality check: Anyone who claims to know for a fact that the market will crash can only be right once in a blue moon. Anyone who keeps guessing the market will crash every day will be right聽eventually聽(what about all of those positive days, which far outweigh the negative market days?). These people should not be trusted because they belong in the same category of 鈥渁dvisors鈥� who guarantee certain returns for their clients on equity/bond/mutual fund/ETF investments鈥攊t鈥檚 just not possible to know for sure, people.

Unfortunately, too many people鈥攖hose not wise enough to know how to invest properly鈥攊nvest based upon feelings of fear and greed, which will always cause rash decisions to be made and money to be lost. If you listen to anyone with an opinion on the market or stock investments, you鈥檙e bound to get some bad and (possibly) some decent advice.

Never base your financial future on what some random person thinks the stock market may or may not do. Talk to a true financial professional: a聽fiduciary聽such as a聽CPA who is knowledgeable in investing matters, or an experienced financial professional who works for a Registered Investment Advisory firm (no commissions, has a聽fiduciary responsibility聽to all clients). These are the types of people to help guide you properly with your financial plan in mind.

If you don鈥檛 have a financial plan, what good are those market investments going to do you? Oh, wait鈥攖hey鈥檙e going to crash, so it doesn鈥檛 matter. Think about that next time you hear someone say that he or she knows when the market will crash.

Do yourself a favor: Make a budget (I know, it鈥檚 hard, but so is anything worthwhile). After you do that, construct a financial plan for your future. Get help from a qualified financial professional if you need it. You can then be prepared for that market crash that will definitely come鈥� someday.

Learn more about Martin聽on聽NerdWallet鈥檚 Ask an Advisor.

The post聽How Can You Be So Sure the Market Will Crash?聽appeared first on聽NerdWallet News.