Investors in their 20's and 30's saving for retirement should be concerned with one thing: Share Accumulation. Believe it or not when the market falls it's not necessarily a bad thing for a young investor who is making periodic contributions to either an IRA or 401k.

When the share price of your mutual fund falls, you have more purchasing power. If the share price of your fund falls from $20 to $10 your $100 monthly contribution will now buy 10 shares rather than 5. You have the luxury of not having to worry about what the market does on a month to month basis because this is money you won't be using for 25 or 30 years.

It is advantageous to take some risk early on in your investing career because you have enough years left to ride through a bumpy market. You don't have to worry about hurting your income stream because you aren't taking one from your plan. Typically the more risk you take the bigger the potential reward, so if you won't need to touch your money for a long time, pick an investment that has a good chance to grow and start buying shares. If the market goes through another rough patch there is no need to get bent out of shape because it will be a long time until you will need the money anyway. If time is on your side, start accumulating shares and take advantage of it.

Steve Hicks

(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).