A a lot of people have decided to invest more in 2022. If you’re one of them, that’s a great goal to aim for. And these tips could help you get the most out of that effort.
1. Don’t fear a stock market crash – prepare for a stock market crash
Rumors were circulating that stocks would collapse in 2022 even before the start of the year, fueled in large part by the emergence of the always intimidating omicron variant. But so far, stock values ââdon’t seem too affected by omicron and the general outbreak of COVID-19.
Moreover, even though we are On the way to a stock market crash this year, wasting energy on getting nervous won’t do you any good. Instead, focus on things you can do to get through a recession unscathed, like increasing your emergency fund and making sure your portfolio is nice and diverse.
Image source: Getty Images.
2. Tap into the power of the vast market
We don’t know which sectors of the market will thrive this year, and which will experience the opposite. What we To do Be aware that while supply chain bottlenecks have eased from where they were a few months ago, omicron has the potential to shut down factories and transportation systems both nationally and nationally. abroad. And so it is difficult to determine what impact, if any, this will have on the value of the shares.
That is why a good bet is to invest in the large market this year. You can do this by loading on S&P 500 ETF.
3. Look at dividend-paying stocks
The great thing about dividend stocks is that they tend to keep paying investors even when stock prices go down. Having dividend-paying stocks in your portfolio is a good way to protect yourself against a market downturn. And it’s also a great way to ensure a regular income that you are free to reinvest.
4. Proceed with caution when buying cryptocurrency
Many investors have had great success with cryptocurrency, and even if you’re new, you might follow in their footsteps. But one thing you should know is that cryptocurrency is very risky.
On the one hand, cryptocurrency has only been around for a little over a decade. Compare that to publicly traded companies that have been around for over 100 years, and it’s easy to see why the idea of ââowning digital coins can be unsettling.
In addition, we do not know the regulations in force in the world of crypto. But if changes occur that make cryptocurrency less tax-attractive, it could lower the value of your digital coins.
This is why it is worth slowing down when it comes to buying cryptocurrency. If you haven’t really tried it yet, start by investing a small percentage of your money and see how you fare rather than going all the way.
5. Take advantage of as many tax advantages as possible
The advantage of investing in a traditional brokerage account is having unlimited access to your money and not having to worry about things like annual contribution limits. But if you plan to invest more this year, it pays to do so in a tax-efficient manner. And that means capitalizing on retirement plans like 401 (k) and IRAs.
Another one less known way to invest in a tax-efficient way? An HSA. While HSAs are limited to savers enrolled in high-deductible health insurance plans, they actually get a triple tax advantage and their funds never expire. This means that the money you invest in an HSA today will be accessible in 20, 30 or 40 years, once it becomes a much larger amount.
Speeding up investing is a great idea for 2022. Follow these tips to maximize your wealth building potential.
10 stocks we prefer at Walmart
When our award-winning team of analysts have investment advice, it can pay off to listen. After all, the newsletter they’ve been running for over a decade, Motley Fool Equity Advisor, has tripled the market. *
They have just revealed what they believe to be the ten best stocks that investors are buying now … and Walmart was not one of them! That’s right – they think these 10 stocks are even better buys.
The portfolio advisor returns 6/15/21
The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.