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Ask yourself these inquiries prior to hopping into the stock market in 2021

Donolatunji

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Jan 10, 2021
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For what reason would you like to contribute?

Before you open a speculation account, monetary specialists state you need to consider the ultimate objective for that cash. "The objective decides the venture," says Scott Cole, a guaranteed monetary organizer and originator of Alabama-based ColeFP and Wealth Management. "Again and again, individuals just 'feel' they ought to contribute, yet they don't have the foggiest idea what they are attempting to do and that aimlessness prompts more unfortunate decisions, no benchmarks and no methodology,"
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. That’s because even if there’s a market downturn, younger investors have time to recover from the losses.


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 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. Instead, financial planners suggest that if you have a short term goal, you should look for a more conservative investment such as bonds, or even keep the money in a high-yield savings account.

“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 Rivermark Wealth Management. “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.”

What do your emergency savings look like?
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 American College of Financial Services and financial coach with the Garrett Planning Network of financial planners.

Lastly, What’s your monthly budget?
In order to make regular, ongoing contributions to your investment accounts, financial planners say you’ll first need to understand your income and expense flow.

That means figuring out your monthly budget. At the very least, you need to understand how much money, on average, you’ll be able to funnel to your investment accounts every month. You can use budgeting tools like Mint or You Need a Budget (YNAB) to figure out how much you can save.

You can also factor in larger upcoming expenses to your budget calculations so they don’t blow your investment plans off track. “At the beginning of the year, I like to get out the calendar and sketch out when big expenses are going to occur throughout the year,” says Christina Empedocles, a CFP and founder of California-based Insight Personal Finance. This may include vacations, infrequent bills such as property taxes, or annual expenses like summer camp for the kids.

Empedocles says she creates automatic monthly transfers to help fund a dedicated savings account nicknamed ‘Infrequent Expenses’ so the money is pre-saved and ready to go when the bills are due.

Whether you create a detailed budget or simply do a rough calculation of your typical expenses, it’s important to know how much you have leftover to invest. “The amount people save is going to be way more important than figuring out if Fund A or Fund B is better,” says David Day, a CFP with Colorado-based Gold Medal Waters.

Once you’ve figured out your investment goals, your emergency savings is funded and you know how much you can contribute each month, experts say you’ll be well-positioned to start investing.
Thank you.
 
For what reason would you like to contribute?

Before you open a speculation account, monetary specialists state you need to consider the ultimate objective for that cash. "The objective decides the venture," says Scott Cole, a guaranteed monetary organizer and originator of Alabama-based ColeFP and Wealth Management. "Again and again, individuals just 'feel' they ought to contribute, yet they don't have the foggiest idea what they are attempting to do and that aimlessness prompts more unfortunate decisions, no benchmarks and no methodology,"
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. That’s because even if there’s a market downturn, younger investors have time to recover from the losses.


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 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. Instead, financial planners suggest that if you have a short term goal, you should look for a more conservative investment such as bonds, or even keep the money in a high-yield savings account.

“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 Rivermark Wealth Management. “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.”

What do your emergency savings look like?
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 American College of Financial Services and financial coach with the Garrett Planning Network of financial planners.

Lastly, What’s your monthly budget?
In order to make regular, ongoing contributions to your investment accounts, financial planners say you’ll first need to understand your income and expense flow.

That means figuring out your monthly budget. At the very least, you need to understand how much money, on average, you’ll be able to funnel to your investment accounts every month. You can use budgeting tools like Mint or You Need a Budget (YNAB) to figure out how much you can save.

You can also factor in larger upcoming expenses to your budget calculations so they don’t blow your investment plans off track. “At the beginning of the year, I like to get out the calendar and sketch out when big expenses are going to occur throughout the year,” says Christina Empedocles, a CFP and founder of California-based Insight Personal Finance. This may include vacations, infrequent bills such as property taxes, or annual expenses like summer camp for the kids.

Empedocles says she creates automatic monthly transfers to help fund a dedicated savings account nicknamed ‘Infrequent Expenses’ so the money is pre-saved and ready to go when the bills are due.

Whether you create a detailed budget or simply do a rough calculation of your typical expenses, it’s important to know how much you have leftover to invest. “The amount people save is going to be way more important than figuring out if Fund A or Fund B is better,” says David Day, a CFP with Colorado-based Gold Medal Waters.

Once you’ve figured out your investment goals, your emergency savings is funded and you know how much you can contribute each month, experts say you’ll be well-positioned to start investing.
Thank you.
There is a tonne of information up there for a well-to-do person who is aspiring to go into stock trading to read, study, and digest about. Thank you for sharing this wonderful information on this platform. More reason I love being on this forum.
 
For what reason would you like to contribute?

Before you open a speculation account, monetary specialists state you need to consider the ultimate objective for that cash. "The objective decides the venture," says Scott Cole, a guaranteed monetary organizer and originator of Alabama-based ColeFP and Wealth Management. "Again and again, individuals just 'feel' they ought to contribute, yet they don't have the foggiest idea what they are attempting to do and that aimlessness prompts more unfortunate decisions, no benchmarks and no methodology,"
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. That’s because even if there’s a market downturn, younger investors have time to recover from the losses.


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 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. Instead, financial planners suggest that if you have a short term goal, you should look for a more conservative investment such as bonds, or even keep the money in a high-yield savings account.

“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 Rivermark Wealth Management. “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.”

What do your emergency savings look like?
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 American College of Financial Services and financial coach with the Garrett Planning Network of financial planners.

Lastly, What’s your monthly budget?
In order to make regular, ongoing contributions to your investment accounts, financial planners say you’ll first need to understand your income and expense flow.

That means figuring out your monthly budget. At the very least, you need to understand how much money, on average, you’ll be able to funnel to your investment accounts every month. You can use budgeting tools like Mint or You Need a Budget (YNAB) to figure out how much you can save.

You can also factor in larger upcoming expenses to your budget calculations so they don’t blow your investment plans off track. “At the beginning of the year, I like to get out the calendar and sketch out when big expenses are going to occur throughout the year,” says Christina Empedocles, a CFP and founder of California-based Insight Personal Finance. This may include vacations, infrequent bills such as property taxes, or annual expenses like summer camp for the kids.

Empedocles says she creates automatic monthly transfers to help fund a dedicated savings account nicknamed ‘Infrequent Expenses’ so the money is pre-saved and ready to go when the bills are due.

Whether you create a detailed budget or simply do a rough calculation of your typical expenses, it’s important to know how much you have leftover to invest. “The amount people save is going to be way more important than figuring out if Fund A or Fund B is better,” says David Day, a CFP with Colorado-based Gold Medal Waters.

Once you’ve figured out your investment goals, your emergency savings is funded and you know how much you can contribute each month, experts say you’ll be well-positioned to start investing.
Thank you.
Quite insightful. Thumbs up for a wonderful piece. Well ironed out and analysed. One has to question some certain things before delving into it. Your write-up has shown that you did your research well. People like me would learn from this and put it to judicious use. Keep penning
 
We have some investment in stocks but we did not buy that. Those stock worth $30k now is a gratuity of the bank given to my wife for her long time service. It was worth $20k when we received it so you can see the profit that was gained. Our aim is to invest in real estate. When my wife retires we would probably sell those stocks, hoping that the value will be bigger than today. For us, teal estate is the best investment so we are going to put our money to a lot that we can build a house or an apartment maybe.
 
The issue of rushing into the stock market will never be over emphasised, more and more persons are losings their Money becouse they failed to listen and heed to instructions, remember we are here to help each other, we are not only here to make money no!
 
In the event that somebody understood what the Forex exchange planned to do tomorrow, not to mention a month or years from now, they would be rich past our creative mind.

That doesn't prevent individuals from guessing, foreseeing and estimating. That is people specialty, that is the thing that monetary news channels, talking heads, specialists, intellectuals, misleading content articles, bloggers and essentially everybody attempts to do. Now and again, you will learn something about the assessment, about a portion of the variables in play and contemplations you should screen. In any case, generally, it is a ton of hot air.
 
For what reason would you like to contribute?

Before you open a speculation account, monetary specialists state you need to consider the ultimate objective for that cash. "The objective decides the venture," says Scott Cole, a guaranteed monetary organizer and originator of Alabama-based ColeFP and Wealth Management. "Again and again, individuals just 'feel' they ought to contribute, yet they don't have the foggiest idea what they are attempting to do and that aimlessness prompts more unfortunate decisions, no benchmarks and no methodology,"
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. That’s because even if there’s a market downturn, younger investors have time to recover from the losses.


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 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. Instead, financial planners suggest that if you have a short term goal, you should look for a more conservative investment such as bonds, or even keep the money in a high-yield savings account.

“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 Rivermark Wealth Management. “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.”

What do your emergency savings look like?
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 American College of Financial Services and financial coach with the Garrett Planning Network of financial planners.

Lastly, What’s your monthly budget?
In order to make regular, ongoing contributions to your investment accounts, financial planners say you’ll first need to understand your income and expense flow.

That means figuring out your monthly budget. At the very least, you need to understand how much money, on average, you’ll be able to funnel to your investment accounts every month. You can use budgeting tools like Mint or You Need a Budget (YNAB) to figure out how much you can save.

You can also factor in larger upcoming expenses to your budget calculations so they don’t blow your investment plans off track. “At the beginning of the year, I like to get out the calendar and sketch out when big expenses are going to occur throughout the year,” says Christina Empedocles, a CFP and founder of California-based Insight Personal Finance. This may include vacations, infrequent bills such as property taxes, or annual expenses like summer camp for the kids.

Empedocles says she creates automatic monthly transfers to help fund a dedicated savings account nicknamed ‘Infrequent Expenses’ so the money is pre-saved and ready to go when the bills are due.

Whether you create a detailed budget or simply do a rough calculation of your typical expenses, it’s important to know how much you have leftover to invest. “The amount people save is going to be way more important than figuring out if Fund A or Fund B is better,” says David Day, a CFP with Colorado-based Gold Medal Waters.

Once you’ve figured out your investment goals, your emergency savings is funded and you know how much you can contribute each month, experts say you’ll be well-positioned to start investing.
Thank you.

Understanding what your monthly budget and assigning how much you should spend on stocks is very important especially for a monthly earner. Getting to know what you want to spend on stock every month is necessary.
 
The third paragraph should really be emphasized upon, why would one invest all in one particular investment, it's important to plan your investment incase of loss.
 
The biggest mistake one could make is going into the stock market Unprepared, or without have having the right knowledge. Before any form of investment or business venture, you must make sure you have done an intense study
 
Yes this is very good point there as well. You must think of the timeline you want to set to achieve your goal in that stock and also wat you intend to use your benefits from your profits to do as well
 
Very much insightful my friend. For me it's best you know what you are doing before putting in any dime, otherwise you will regret it.

Instead of going for stocks when you lack the knowledge, you should go for real estate investing Instead.
 
These are some very important questions that everybody should get familiar with . You should also ask yourself about the company profile and how long you think they can stay in the market.
 
Excellent write up though I skimmed through anyways.😁 But it's a common saying that "when the purpose of a thin isn't known, abuse is inevitable".
Same goes for investing, when you don't know why you want to invest or have little or no idea about what you're investing in.
 
Stock market is one market that need close and intense study before trading on it even when you have to set some priorities of how you want to sustain in the market it is better you have a clear cut plan for such.
This is actually the same thing when it comes to cryptocurrency market and also forex trading market because all the online market is something that is very technical but you need to take time to learn very well.
 
Suggestively, it is advisable that before you venture into any business or investment you should try to understand how it operates so you can make really precise and accurate choices when investing or performing your business related tasks.
 
The stock market is a very techncal intensive market that one really need to know and understand the rudiment and fundamentals first before he can be able to make a lee way in that trading market,else you would need a brooker.
 
Before trading, you should thoroughly research the stock market. Even if you need to set certain priorities for how you want to survive the market, it is best to have a well-defined plan in place.
 

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