I distilled my advice into a series of tips, tricks and hacks that would help all young people take control of their spending and saving (see “Money Smart Women” in the March 2023 and May 2023 issues). This month, I’d like to close the loop with my best strategies for novice investors.
First, some caveats. Before you even think about investing in the stock market, take stock of your overall finances. For starters, you should seed an emergency fund that will eventually cover at least three to six months’ worth of your expenses. Stash that money in a safe place, such as a bank account or money market fund, where you can get your hands on it in a hurry if necessary. The same goes for money you’re saving for short-term goals, such as next year’s vacation or a down payment on a house. You don’t want to risk money that you’re going to need in fewer than five years.
And getting rid of high-interest-rate debt should be a top priority. Paying off the balance on a credit card that charges you, say, 20% is the equivalent of earning 20% on your money.
But for longer-term goals—notably retirement—the stock market is the place to be. And the younger you are, the more you should tilt toward stocks to take advantage of your greatest asset: time. The time-tested route to investing success is to follow these four steps: Start soon, start small, invest steadily and keep it simple.
Keep it simple, part 1.
この記事は Kiplinger's Personal Finance の December 2024 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Kiplinger's Personal Finance の December 2024 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
FREE HELP FOR COLLEGEBOUND STUDENTS
This program’s mentors assist applicants as they fill out the FAFSA, write essays and more.
WHAT YOU SHOULD KNOW ABOUT SPOUSAL IRAS
You typically need earned income to contribute to an individual retirement account, but a spousal IRA provides an important exception to this rule.
SELLING SHARES? HERE'S HOW TO MINIMIZE TAXES ON YOUR GAINS
ET'S say you've been regularly buying shares in a booming tech company over the past few years, but now you want to start taking some of those profits, perhaps to rebalance your portfolio.
Strategies for Novice Investors
AS part of a lifes kills program for young, single mothers, I was asked to teach a class on how to get on top of your finances.
ANSWERS TO YOUR 529 PLAN QUESTIONS
Thanks to recent policy changes, families have more options for what to do with money sitting in these tax-advantaged accounts.
Rate-Cut Winners and Losers
NOW that the Federal Reserve has cracked the interest rate ice, the next development will be to separate winners from losers.
SHOULD YOU BUY THESE RED-HOT FUNDS?
Covered-call ETFs are popular but come with plenty of caveats.
DIVIDEND STOCKS ARE READY TO REBOUND
Our favorite dividend payers are poised to benefit as falling interest rates lure investors back.
IS A 55+ COMMUNITY RIGHT FOR YOU?
These age-restricted developments appeal to older adults seeking abundant amenities and an active lifestyle.
AT LONG LAST, RATES ARE DROPPING
Consider these portfolio moves now that the Federal Reserve has cut its benchmark interest rate.