Why’s My Stock Falling?

QA stock I bought has fallen, and I see no explanation in the news. What’s up? — T.G., Billings, Montana

AIndividual stocks, like the overall stock market, don’t move in a straight line. Over long periods, the stock market has always risen, but via a jagged line. Individual stocks will also be volatile to some degree, though shares of successful companies rise over the long run and those of less successful businesses falter or fall.

Share prices will rise or fall from day to day due to company news (big profits!), or economic news (a pandemic!), or some other reason, or sometimes no reason at all. Stock prices essentially reflect what investors are willing to buy and sell them for at that moment — and investors’ sentiments can change quickly.

Long-term investors needn’t worry about short-term moves. Focus on how confident you are in a company’s prospects and what you think its stock is really worth. The prices that matter most are the price you bought at and the price you eventually sell at.

***

QHow costly will health care be when I’m retired? — P.L., Lawrence, Kansas

AThe estimate rises every year. According to Fidelity Investments, an average 65-year-old couple retiring in 2021 will spend about $300,000 on health care in retirement — excluding costs such as longterm care, most dental expenses and over-the-counter drugs. Of course, many of us may end up spending far more or far less. Regardless, that shocking number is a good reminder to plan for significant health care costs in retirement. Beginning at age 65, Medicare is a big help, but even with it, you’ll likely still have

out-of-pocket expenses.