Category: Investing

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Investing

10 best long-term investments in February 2023 – Yahoo Finance

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Photos by Adobe Stock/Illustration by Bankrate

One of the best ways to secure your financial future is to invest, and one of the best ways to invest is over the long term. It may have been tempting over the past few years to deviate from a long-term approach and chase quick returns. But it’s more important than ever to focus on investing for the long haul while sticking to your game plan.

Investors today have many ways to invest their money and can choose the level of risk that they’re willing to take to meet their needs. You can opt for very safe options such as a certificate of deposit (CD) or dial up the risk – and the potential return! – with investments such as stocks, mutual funds or ETFs.

In fact, stocks were Americans’ second-most popular choice for long-term investments, behind only real estate, according to a recent Bankrate survey. Both categories feature prominently in the list below.

Or you can do a little of everything, diversifying your portfolio so that it tends to do well in almost any investment environment.

Overview: Top long-term investments in February 2023

1. Growth stocks

Overview: In the world of stock investing, growth stocks are the Ferraris. They promise high growth and along with it, high investment returns. Growth stocks are often tech companies, but they don’t have to be.

They generally plow all their profits back into the business, so they rarely pay out a dividend, at least not until their growth slows.

Who are they good for?: If you’re going to buy individual growth stocks, you’ll want to analyze the company carefully, and that can take a lot of time.

And because of the volatility in growth stocks, you’ll want to have a high risk tolerance or commit to holding the stocks for at least three to five years.

Risks: Growth stocks can be risky because often investors will pay a lot for the stock relative to the company’s earnings.

So when a bear market or a recession arrives, these stocks can lose a lot of value very quickly. It’s like their sudden popularity disappears in an instant. However, growth stocks have been some of the best performers over time.

Rewards: The world’s biggest companies – the Alphabets and the Amazons – have been high-growth companies, so the reward is potentially limitless if you can find the right company.

Where to …….

Source: https://news.google.com/__i/rss/rd/articles/CBMiS2h0dHBzOi8vZmluYW5jZS55YWhvby5jb20vbmV3cy8xMC1iZXN0LWxvbmctdGVybS1pbnZlc3RtZW50cy0wNTEwMjI4NDkuaHRtbNIBU2h0dHBzOi8vZmluYW5jZS55YWhvby5jb20vYW1waHRtbC9uZXdzLzEwLWJlc3QtbG9uZy10ZXJtLWludmVzdG1lbnRzLTA1MTAyMjg0OS5odG1s?oc=5

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Investing

Why Teenagers Should Start Investing Early…And 3 Proven Investment Tips For Any Age. – Forbes

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Teenager investing in the stock market through financial app.

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What do all parents have in common? We want the best for our kids. We want our kids to grow up to be independent, healthy adults who can achieve their dreams and live a full life. While money isn’t everything, the ability to manage our money is an important piece of living a healthy life. Our kids ability to manage money will affect every step they take in their adult lives, including getting a job, managing their careers, renting an apartment, buying a home and having a family.

A necessary aspect of managing money is how to earn and grow your money. Teenagers today have an opportunity that most of us never had – the ability to invest in the stock market at an early age and earn compound interest. Most adults were not taught the basics of investing as a teenager, and/or didn’t have access to investing platforms. This means investing may seem too risky, or it could be intimidating to adults. However, if done the right way, investing early can empower teens to create the life they envision.

The ‘right way’, starts with financial education, according to Eddie Behringer, Co-Founder and CEO of Copper Banking, a teen focused banking and financial education platform. Copper was founded with the mission to create the first financially literate generation, and recently launched Copper Investing, the first-ever teen-and-kid-centric Registered Investment Advisor (RIA). Copper research shows that teenagers want to learn about finance and are eager to start investing, but because finance is not taught at schools, most teens don’t understand finance.

– 74%: teens who don’t feel confident about their financial education

– 48%: score on a financial literacy exam given to high school seniors

– 32% of teens can’t tell the difference between a credit and a debit card

– 27%: youth who know what inflation is and can do simple interest rate calculation

“With inflation on the rise, teens need to go beyond saving—they need to learn about growing wealth,” Behringer says. “One of the biggest opportunities for teen wealth-building is time in the market and willingness to take risk. Our research shows teens are eager to get started and with Copper Investing, we will empower them to become savvy investors from a place of financial education so parents can feel secure, too, knowing their teen’s financial future comes first.”

Why Invest as a Teenager:

Build Wealth: Although 2022 was a rocky ride, the market is still the best way to build wealth. Most adults …….

Source: https://news.google.com/__i/rss/rd/articles/CBMiigFodHRwczovL3d3dy5mb3JiZXMuY29tL3NpdGVzL2xpemZyYXppZXJwZWNrLzIwMjMvMDIvMDEvd2h5LXRlZW5hZ2Vycy1zaG91bGQtc3RhcnQtaW52ZXN0aW5nLWVhcmx5YW5kLTMtcHJvdmVuLWludmVzdG1lbnQtdGlwcy1mb3ItYW55LWFnZS_SAY4BaHR0cHM6Ly93d3cuZm9yYmVzLmNvbS9zaXRlcy9saXpmcmF6aWVycGVjay8yMDIzLzAyLzAxL3doeS10ZWVuYWdlcnMtc2hvdWxkLXN0YXJ0LWludmVzdGluZy1lYXJseWFuZC0zLXByb3Zlbi1pbnZlc3RtZW50LXRpcHMtZm9yLWFueS1hZ2UvYW1wLw?oc=5

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Investing

Suze Orman is staying conservative with her investments, shunning … – CNBC

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Source: https://news.google.com/__i/rss/rd/articles/CBMifWh0dHBzOi8vd3d3LmNuYmMuY29tLzIwMjMvMDEvMjgvc3V6ZS1vcm1hbi1pcy1zdGF5aW5nLWNvbnNlcnZhdGl2ZS13aXRoLWhlci1pbnZlc3RtZW50cy1zaHVubmluZy10ZWNoLWFuZC1idXlpbmctdC1iaWxscy5odG1s0gEA?oc=5

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Investing

Suze Orman is staying conservative with her investments, shunning … – CNBC

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Source: https://news.google.com/__i/rss/rd/articles/CBMifWh0dHBzOi8vd3d3LmNuYmMuY29tLzIwMjMvMDEvMjgvc3V6ZS1vcm1hbi1pcy1zdGF5aW5nLWNvbnNlcnZhdGl2ZS13aXRoLWhlci1pbnZlc3RtZW50cy1zaHVubmluZy10ZWNoLWFuZC1idXlpbmctdC1iaWxscy5odG1s0gEA?oc=5

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Investing

Suze Orman is staying conservative with her investments, shunning … – CNBC

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Source: https://news.google.com/__i/rss/rd/articles/CBMifWh0dHBzOi8vd3d3LmNuYmMuY29tLzIwMjMvMDEvMjgvc3V6ZS1vcm1hbi1pcy1zdGF5aW5nLWNvbnNlcnZhdGl2ZS13aXRoLWhlci1pbnZlc3RtZW50cy1zaHVubmluZy10ZWNoLWFuZC1idXlpbmctdC1iaWxscy5odG1s0gEA?oc=5

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‘It’s addictive; it’s seductive, and you can destroy your future.’ Keep ‘fun money’ from ruining your investment plan. – MarketWatch

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When investors tell financial adviser Zachary Scott that they want to set aside some money for risky wagers, he winces. He doesn’t want them to squander it.

“A lot of them want to have a ‘fun money’ account that they can play with,” said Scott, a certified financial planner at Castellan Financial Group in Catonsville, Md. “I talk them out of that.”

If clients want to buy risky stocks or cryptocurrency, he encourages them to rethink how they define “fun money.” They may claim that they enjoy making speculative bets — that they know what they’re doing and love the thrill of rolling the dice and coming up big — but he pushes back.

“My definition of fun money is money you literally use to have fun,” he said. “That means spending it on an experience like a vacation or a dinner out. Investing is something different. It should be taken seriously, not treated like gambling.”

At the same time, advisers know the limits of their role. They cannot tell clients how to spend their money. But they can offer guidance and expertise, and hope it sinks in.

Like Scott, Mark Matson rejects the notion of fun money as a sound part of financial planning. He’s founder and chief executive of Matson Money in Scottsdale, Ariz. The risk of fun money is that it can suck investors in. If an adviser agrees that a client can play with, say, 10% of their cash, it might be tough to stick to that percentage over time.

“If you get lucky [investing that 10%] with options or commodities or bitcoin, you think you have the ability,” Matson said. “You think, ‘Jeez, I’m a genius.’ Then you start chasing for more. It’s addictive; it’s seductive, and you can destroy your future.”

While Scott and Matson take a hard line on fun money, other advisers are flexible. They may indulge a client’s pleas to divert a certain amount of their savings for high-risk, potentially high-reward bets. Ron Strobel, a certified financial planner at Retire Sensibly in Meridian, Idaho, isn’t a fan of play money. But he’s willing to work with clients who insist on keeping a stash on hand.

“Play money can encourage gambling if the percentage is too high,” he said. “I’ve seen clients pull money out of their savings to invest in something that’s high-risk, and then they get into trouble.”

Strobel strives to accommodate clients’ need to speculate. He might say, “Don’t put any more than 2% into your play money fund.”

He knows that quick gains can breed overconfidence that leads to long-term disaster, so Strobel sets boundaries. His goal …….

Source: https://news.google.com/__i/rss/rd/articles/CBMimgFodHRwczovL3d3dy5tYXJrZXR3YXRjaC5jb20vc3RvcnkvaXRzLWFkZGljdGl2ZS1pdHMtc2VkdWN0aXZlLWFuZC15b3UtY2FuLWRlc3Ryb3kteW91ci1mdXR1cmUta2VlcC1mdW4tbW9uZXktZnJvbS1ydWluaW5nLXlvdXItaW52ZXN0bWVudC1wbGFuLTExNjc1MDU2NjY00gGeAWh0dHBzOi8vd3d3Lm1hcmtldHdhdGNoLmNvbS9hbXAvc3RvcnkvaXRzLWFkZGljdGl2ZS1pdHMtc2VkdWN0aXZlLWFuZC15b3UtY2FuLWRlc3Ryb3kteW91ci1mdXR1cmUta2VlcC1mdW4tbW9uZXktZnJvbS1ydWluaW5nLXlvdXItaW52ZXN0bWVudC1wbGFuLTExNjc1MDU2NjY0?oc=5

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Suze Orman is staying conservative with her investments, shunning tech and buying T-bills – CNBC

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Source: https://news.google.com/__i/rss/rd/articles/CBMifWh0dHBzOi8vd3d3LmNuYmMuY29tLzIwMjMvMDEvMjgvc3V6ZS1vcm1hbi1pcy1zdGF5aW5nLWNvbnNlcnZhdGl2ZS13aXRoLWhlci1pbnZlc3RtZW50cy1zaHVubmluZy10ZWNoLWFuZC1idXlpbmctdC1iaWxscy5odG1s0gEA?oc=5

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Investing

‘It’s addictive; it’s seductive, and you can destroy your future.’ Keep ‘fun money’ from ruining your investment plan. – MarketWatch

npressfetimg-229.png

When investors tell financial adviser Zachary Scott that they want to set aside some money for risky wagers, he winces. He doesn’t want them to squander it.

“A lot of them want to have a ‘fun money’ account that they can play with,” said Scott, a certified financial planner at Castellan Financial Group in Catonsville, Md. “I talk them out of that.”

If clients want to buy risky stocks or cryptocurrency, he encourages them to rethink how they define “fun money.” They may claim that they enjoy making speculative bets — that they know what they’re doing and love the thrill of rolling the dice and coming up big — but he pushes back.

“My definition of fun money is money you literally use to have fun,” he said. “That means spending it on an experience like a vacation or a dinner out. Investing is something different. It should be taken seriously, not treated like gambling.”

At the same time, advisers know the limits of their role. They cannot tell clients how to spend their money. But they can offer guidance and expertise, and hope it sinks in.

Like Scott, Mark Matson rejects the notion of fun money as a sound part of financial planning. He’s founder and chief executive of Matson Money in Scottsdale, Ariz. The risk of fun money is that it can suck investors in. If an adviser agrees that a client can play with, say, 10% of their cash, it might be tough to stick to that percentage over time.

“If you get lucky [investing that 10%] with options or commodities or bitcoin, you think you have the ability,” Matson said. “You think, ‘Jeez, I’m a genius.’ Then you start chasing for more. It’s addictive; it’s seductive, and you can destroy your future.”

While Scott and Matson take a hard line on fun money, other advisers are flexible. They may indulge a client’s pleas to divert a certain amount of their savings for high-risk, potentially high-reward bets. Ron Strobel, a certified financial planner at Retire Sensibly in Meridian, Idaho, isn’t a fan of play money. But he’s willing to work with clients who insist on keeping a stash on hand.

“Play money can encourage gambling if the percentage is too high,” he said. “I’ve seen clients pull money out of their savings to invest in something that’s high-risk, and then they get into trouble.”

Strobel strives to accommodate clients’ need to speculate. He might say, “Don’t put any more than 2% into your play money fund.”

He knows that quick gains can breed overconfidence that leads to long-term disaster, so Strobel sets boundaries. His goal …….

Source: https://news.google.com/__i/rss/rd/articles/CBMimgFodHRwczovL3d3dy5tYXJrZXR3YXRjaC5jb20vc3RvcnkvaXRzLWFkZGljdGl2ZS1pdHMtc2VkdWN0aXZlLWFuZC15b3UtY2FuLWRlc3Ryb3kteW91ci1mdXR1cmUta2VlcC1mdW4tbW9uZXktZnJvbS1ydWluaW5nLXlvdXItaW52ZXN0bWVudC1wbGFuLTExNjc1MDU2NjY00gGeAWh0dHBzOi8vd3d3Lm1hcmtldHdhdGNoLmNvbS9hbXAvc3RvcnkvaXRzLWFkZGljdGl2ZS1pdHMtc2VkdWN0aXZlLWFuZC15b3UtY2FuLWRlc3Ryb3kteW91ci1mdXR1cmUta2VlcC1mdW4tbW9uZXktZnJvbS1ydWluaW5nLXlvdXItaW52ZXN0bWVudC1wbGFuLTExNjc1MDU2NjY0?oc=5

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Investing

Suze Orman is staying conservative with her investments, shunning tech and buying T-bills – CNBC

npressfetimg-228.png

Source: https://news.google.com/__i/rss/rd/articles/CBMifWh0dHBzOi8vd3d3LmNuYmMuY29tLzIwMjMvMDEvMjgvc3V6ZS1vcm1hbi1pcy1zdGF5aW5nLWNvbnNlcnZhdGl2ZS13aXRoLWhlci1pbnZlc3RtZW50cy1zaHVubmluZy10ZWNoLWFuZC1idXlpbmctdC1iaWxscy5odG1s0gEA?oc=5

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Investing

How To Recession-Proof Your Investments – Forbes

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Key takeaways

  • It is possible to make money in a down market. You just have to be more strategic with your plans.
  • Avoid speculative stocks. Instead, invest in high-quality companies.
  • Consider selling options and investing in actively managed funds to earn a decent return during a weak market.

As the fear of recession grows, more investors wonder how to recession-proof their investments. Is there a way to not lose money in a down market? Are some investments better than others?

Here is what you need to know to protect your wealth during a weak economy and declining stock market, as well as how you can potentially grow your wealth.

Investing comes with risk

It’s important to understand that the only way you can remove 100% of the risk of losing money when investing in the stock market is not to invest at all. When you purchase an investment, whether it’s a stock, bond, mutual fund, or exchange-traded fund, there is the risk of it going down in value.

While you cannot remove this risk, you can reduce it by investing strategically. Read on for guidance on the moves you can make to keep your money safe and grow it, even if the stock market isn’t increasing.

With that said, here are the moves you can consider if they make sense for your risk tolerance and fit into your investment goals.

Don’t go all in

It might be tempting to pour all your cash into the market when it is down, but this could be a foolish mistake. First, the market looks cheap to you based on where it was. If a stock was trading at $200 per share and now is trading at $75, is it cheap?

Based solely on the price, the answer is yes. But you can’t purchase investments this way. You have to look at the business and the economy as well. The stock could have traded as high as it did simply due to a one-time event or investors being irrational.

Take Peloton, for example. When gyms were closed, the best option for exercising at home was the experience that Peloton provided. As a result, sales were abnormally high, and so was the stock price. But now that gyms are open again and people have more options for working out, Peloton sales are down. The stock, which once traded at over $160 per share, is now trading for less than $10.

Is it …….

Source: https://news.google.com/__i/rss/rd/articles/CBMie2h0dHBzOi8vd3d3LmZvcmJlcy5jb20vc2l0ZXMvcWFpLzIwMjMvMDEvMjAvaG93LXRvLXJlY2Vzc2lvbi1wcm9vZi15b3VyLWludmVzdG1lbnRzLS0taG93LWludmVzdG9ycy13aW4taW4tYS1sb3NpbmctbWFya2V0L9IBf2h0dHBzOi8vd3d3LmZvcmJlcy5jb20vc2l0ZXMvcWFpLzIwMjMvMDEvMjAvaG93LXRvLXJlY2Vzc2lvbi1wcm9vZi15b3VyLWludmVzdG1lbnRzLS0taG93LWludmVzdG9ycy13aW4taW4tYS1sb3NpbmctbWFya2V0L2FtcC8?oc=5