Here is what you need to know about investing in 2021

This is a good question for the New Year: Is 2021 a good time to invest in stocks?

In such turbulent times, it is difficult to know the right financial measures to take. Many of the tried-and-tested recommendations we have been relying on no longer seem to be relevant. Is now a good time to invest? Should I focus on paying off debts? Still save money?

It is helpful to consult a professional. So we asked Robin Hartill, a certified financial planner, editor of The Penny Hoarder, and financial advice columnist Robin Hartill.

Here are six financial questions we recently received from readers:

1. “The cost of waiting is high”

Question: “Is 2021 a good time to invest, or should I wait for the market to exit?”

Hartill’s advice: take a long-term view. Over time, the stock market will increase your money, so you’d better start early.

Hartill said: “The timing of investment is far less important than the amount of time that must be invested.” “The S&P 500 has provided an average annual inflation-adjusted return of about 7% for the past 50 years. The cost of waiting for the best investment opportunity is high. You Long-term growth is missed.”

A profitable investment is about taking a long-term view. Don’t know how to start?Use the name Tibetan, You can start using it for only $1. * It allows you to choose from hundreds of stocks and funds to build your own investment portfolio. By dividing them into categories based on your personal goals, it makes things simple.

“If you want to make a quick profit from the stock market, now may not be a good time,” Hartier said. “We are still in a recession, but the stock market has recovered. But the real investment is not making quick money. It’s about increasing your money over time.”

In any case, she recommends budgeting a certain amount of funds for investment every month.

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2. “You can lose only so much fat”

Question: “My monthly expenses keep increasing. Is there anything I can do?”

“You can cut so much fat from your budget. Eventually, you start to cut muscle and bone,” Hartier said. “Cost cutting is usually a good way to achieve short-term goals, such as saving for holidays or down payments. But for really big long-term goals, such as retirement and protecting your family from the worst-case scenario, spending cuts can only go so far. .”

However, if you need to cut expenses, check carefully your mandatory monthly bills-such as car insurance. When was the last time you checked the price? You should shop around every six months or so.

If you browse a digital market called Smart Finance, You can get rates as low as US$22 per month-saving you more than US$700 per year.

It takes a minute to get quotes from multiple insurance companies, so you can view all the best rates side by side. Yes-you can save yourself $715 this year in just one minute. This is some of the main cash in your pocket.

So if you haven’t checked the car insurance rate for a while, See how much you can save There is a new policy.

3.’If you check your expenses…’

Question: “My budget is tight. What debts should I focus on paying off?”

“The only way to get out of debt is to spend less than income,” Hartier said. “But if you can control your expenses, debt consolidation loans can help you get out of debt faster.”

She added: “This option only makes sense if you lower your interest payment. Many people with poor credit actually find that the interest rate they approve is even higher than the interest rate they are currently paying.”

There is a quick way to determine if this is right for you.It only takes a few minutes to view your options on the website named slim ShadyIf you owe your credit card company $50,000 or less, it will provide you with a low-interest loan that you can use to repay every balance you have.

benefit? You will need to pay a bill every month.And because the interest rate of personal loans is low (AmOne interest rate starts from 3.49% annual interest rate), you will get out of debt that Much faster. Also: No credit card payment this month.

Takes two minutes See if you are eligible for up to $50,000 online.

4. “You don’t have to be idle”

Question: “My savings account has bottomed out. Is there any other way to earn passive income?”

Hartier said: “Although interest rates will stay low until at least 2023, that doesn’t mean you have to be content with saving nothing.”

Today, most banks pay almost no interest on the savings of account holders.Try to switch to desire account. It allows you to earn up to 5% cash back every time you swipe your card, and up to 16 times the average interest on the funds in your account. In addition, you never need to pay monthly account maintenance fees.

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5. “Most of us don’t have enough income”

Question: “How can I make enough money for retirement?”

Hartier shared with us a cruel fact: “The income of most of us is not enough to sustain retirement.”

Ouch,it hurts. But wait, she offered a solution: “Spend money by investing in the stock market, and the returns you earn compound into more money.”

“If you need $500,000 in reserves to retire, you have to cut $10,000 from your budget for 50 consecutive years to achieve it by saving only. However, if you invest only $5,000 a year and get a 6% return, then you will Achieve the goal in less than 34 years.”

6. “The only practical way to provide your family with a sense of security”

Question: “I have a family. How can I ensure that they are protected during these uncertain times?”

“Spending money on life insurance is the only practical way to provide your family with the security they deserve,” Hartier said. “When you have young children, your life insurance needs are greatest. Fortunately, this is usually when you are still young and life insurance is relatively cheap.”

Maybe you are thinking: I don’t have the time or money to do this. But it takes a few minutes-you can leave up to $1 million in funds for your family to a company called give.

We heard that people only pay $8 a month. (But you wait every year, it will become more expensive.)

It only takes a few minutes Get a free quote See how much life insurance you can leave for your loved ones-even if you don’t have seven digits in your bank account.

Mike Brasfield ([email protected]) Is the senior writer of The Penny Hoarder. He is not a certified financial planner, but he has stayed at Holiday Inn Express.

*For securities with a price of more than $1,000, the starting price to purchase fractional stocks is $0.05.

**You will also bear the standard fees and expenses reflected in the ETF pricing in your account, as well as various ancillary service fees charged by Stash and the custodian.