Early, young investors: This is what you should be doing with your money during pandemic
It’s safe to say a lot of people are worried about their finances right now, but certified financial planner professional Nancy Hecht has some sound advice for young and early investors.
There are two things you need to work on:
- Start participating in the payroll deductive retirement plan, as much as you’re able.
- Build up cash reserves.
Hecht said if you can only do one or the other, build up the reserves.
“It’s times like now that you realize how important having cash on hand is,” she said.
Hecht said the goal is to have at least six months of income in a checking, savings or money market account.
“This is not buying a new car or vacation money,” she said. It’s emergency money only.
So how should you look at your investments right now?
You should know that, as a younger person, you have time on your side.
“As they’re adding investments to their payroll deduction plan, they’re able to buy more and more shares,” Hecht said.
Here’s the good news for you right now: As your deposits are hitting, you’re hoping that the markets are negative so that you can get more and more shares.
“The more shares you have will equal the more income that’s paid to you when you eventually do retire,” Hecht said. “If you’re a young investor, and you have a lot of time on your side, you should be jumping for joy. Something like this does not happen that frequently. It’s an opportunity to buy quality investments on sale and then hold them for the longterm.”
Learn more by watching the video above.
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