Should I invest my money if a recession is coming? Advice from a CFP - Business Insider

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I asked a financial planner what to do, and she said investing now is always better than investing later

I now have $40,000 saved up, all sitting in various savings accounts. I've got $5,000 sitting in a savings account that doesn't earn interest as a cushion for my checking account, another $5,000 sitting inas money to use for any self-investment opportunities that come up, and the final $30,000 in a separate high-yield savings account as a very generous emergency fund.

As a young person in a good financial position to start investing, Ladejobi told me that the next recession shouldn't concern me. "As a matter of fact, a decline in the stock market should spell a buying opportunity for you," she explained. It runs counter to most people's intuition, but when the market dips or crashes, you should invest even more money.

Historically speaking, returns on the stock market average out to 10% — 7% when adjusted for inflation. Compare this to a typical savings account, which often earns 0.01% to 0.03%, or even high-yield savings accounts, which currently earn around 2% at best, and it's easy to see why investing for the long-run is a no-brainer.

DuQuesnay said that investing today is even more important for someone like me with 20 or 30 more years to go until retirement. "The power of compounding returns only shows up after significant time invested in the market," she continued, "and you can't start participating until you invest."It's clear to me that I need to start investing, regardless of my worries about the economy. All I need now is a plan.

 

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lose your money get you an orange outfit for meditation out in the woods and I shall see you there for a wood class to do wood stuff in the woods like practicing happiness and all. it's all God's plan don't say a thing

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