Too often, people just 'feel' they should be investing, but they don't know what they are trying to do and that aimlessness leads to poorer choices, no benchmarks, and no strategy.Think about what you're planning to use the money for and the timeline for that goal. For a 25-year-old contributing to a retirement account, a portfolio that's heavy in stocks may be totally appropriate.
But a couple looking to buy a house in the next five years should probably not put all of their money into stocks. If the the market drops two years after the couple invests, they may lose a significant amount of the money they've earmarked for a down payment, putting their dream of owning a home within five years out of reach.
"Buying a bunch of stocks without a clear goal is like jumping in the car and driving without any idea of the destination," says Ron Guay, a financial planner with California-based . "The goal doesn't have to be perfect or precise, but it's an important exercise that helps an investor connect their money to their goals and values."The next question you should ask is whether you have enough cash on hand to start investing. While there are apps and services available that let you start with just $1, experts say you should first funnel some cash into an emergency savings fund.
That way, if you run into any issues, you have money on hand, rather than cashing out your investments or being forced to pay a penalty to access money saved in a retirement account. "Many investors jump right in and put their money immediately at risk," says Randy Gardner, an adjunct professor of financial planning at the
MakeIt 1. is it a bubble? 2. is bitcoin a better hedge? 3. does this look infected to you?
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