CAPE GIRARDEAU, MO (KFVS) - For the first time in history, the Dow Jones index was above 20,000 during the opening and closing bells. But that might make you wonder: what does that mean for your money?
In a short answer, not a whole lot.
"It's a good sign - we definitely want the market going up," said Derieck Hodges, a Certified Financial Planner. "It comes down to fundamentals. Are companies making money? Is the overall economy strong? Those are the things that ultimately are gonna help us cross barriers."
As a CFP, Hodges helps people not only plan for the future but helps them invest their money. And while it's a common investment, the stock market isn't the only place.
"Like the old food pyramid in school we're supposed to have other things on our plate," said Hodges. "We need to have some vegetables too! Well, that means we might need to own some bonds, maybe we need to own some real estate, and other things."
Because most people have their money diversified, the Dow doesn't always mean their investments are going well. It all depends on the whole picture of your portfolio.
If you think that you have no money in stocks you might be wrong. Most retirement funds invest in the stock market.