If banks are certified and backed by the government, then why during financial crisis do people lose out on their retirement investments?
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Investments in stocks go up and down in value. Protections mean your account can’t just go “poof!” because a bank fails, but there is no guarantee about the value of the assets you own within your account.
Often, people panic during financial crises and sell when stocks go down, realizing the losses. If they would just sit tight, and even buy into the dip, they’ll come out ahead when the markets eventually go back up.
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