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

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 59 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 27%
  • Publisher: 51%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

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.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in CA
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

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

Huge if true

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Retirement saving to be harder in 2020, advice from BlackRock's Rieder - Business InsiderBlackRock's $1.7 trillion bond chief explains why it's about to become much harder to save for retirement — and shares his best advice for doing it successfully Well, apparently both North Korea and Russia are going to kill us with nuclear bombs (so they say). So do I have to save for retirement or not? Many people’s retirement ”plan” is suicide. The current math doesn't work out. Are they going to help or just exploit the desperate?
Source: BusinessInsider - 🏆 729. / 51 Read more »

Retirement saving to be harder in 2020, advice from BlackRock's Rieder - Business InsiderBlackRock's $1.7 trillion bond chief explains why it's about to become much harder to save for retirement — and shares his best advice for doing it successfully Well, apparently both North Korea and Russia are going to kill us with nuclear bombs (so they say). So do I have to save for retirement or not? Many people’s retirement ”plan” is suicide. The current math doesn't work out. Are they going to help or just exploit the desperate?
Source: BusinessInsider - 🏆 729. / 51 Read more »