Money Market Accounts – Ameritas UK News http://www.ameritas.co.uk/ Sun, 23 Jan 2022 10:36:37 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://www.ameritas.co.uk/wp-content/uploads/2021/03/cropped-default1-32x32.png Money Market Accounts – Ameritas UK News http://www.ameritas.co.uk/ 32 32 Amerant Bancorp Inc. (NASDAQ:AMTB) will issue a quarterly dividend of $0.09 https://www.ameritas.co.uk/amerant-bancorp-inc-nasdaqamtb-will-issue-a-quarterly-dividend-of-0-09/ Sat, 22 Jan 2022 22:13:16 +0000 https://www.ameritas.co.uk/amerant-bancorp-inc-nasdaqamtb-will-issue-a-quarterly-dividend-of-0-09/ Amerant Bancorp Inc. (NASDAQ:AMTB) announced a quarterly dividend on Friday, January 21, reports The Wall Street Journal. Investors of record on Friday February 11 will receive a dividend of 0.09 per share on Monday February 28. This represents a dividend of $0.36 on an annualized basis and a yield of 1.06%. The ex-date of this […]]]>

Amerant Bancorp Inc. (NASDAQ:AMTB) announced a quarterly dividend on Friday, January 21, reports The Wall Street Journal. Investors of record on Friday February 11 will receive a dividend of 0.09 per share on Monday February 28. This represents a dividend of $0.36 on an annualized basis and a yield of 1.06%. The ex-date of this dividend is Thursday, February 10.

Amerant Bancorp has a dividend payout ratio of 10.4%, which means its dividend is sufficiently covered by earnings. Research analysts expect Amerant Bancorp to earn $2.03 per share next year, meaning the company should continue to be able to cover its $0.24 annual dividend with a ratio expected future payout of 11.8%.

The NASDAQ AMTB traded down $0.33 on Friday, hitting $33.81. The company had a trading volume of 138,207 shares, compared to an average volume of 92,346. The company has a market capitalization of $1.27 billion, a price-earnings ratio of 23.09 and a beta of 1.10. . Amerant Bancorp has a fifty-two week low of $13.63 and a fifty-two week high of $36.72. The company has a 50-day moving average of $32.46 and a two-hundred-day moving average of $27.21. The company has a debt ratio of 1.15, a current ratio of 0.99 and a quick ratio of 0.95.

Amerant Bancorp Inc (NASDAQ:AMTB) last released quarterly earnings data on Wednesday, January 19. The company reported earnings per share of $0.52 for the quarter, beating the Zacks consensus estimate of $0.40 by $0.12. Amerant Bancorp had a return on equity of 7.88% and a net margin of 18.58%. In the same period a year earlier, the company had earned earnings per share of $0.27. As a group, research analysts predict Amerant Bancorp will post 1.72 earnings per share for the current fiscal year.

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In related news, Director A. Gustavo J. Vollmer sold 2,630 shares of Amerant Bancorp in a trade that took place on Monday, December 13. The shares were sold at an average price of $29.93, for a total value of $78,715.90. The transaction was disclosed in a document filed with the Securities & Exchange Commission, accessible via this link. Additionally, director Millar Wilson sold 30,769 shares of the company in a trade on Wednesday, November 17. The shares were sold at an average price of $29.97, for a total transaction of $922,146.93. The disclosure of this sale can be found here. 17.15% of the shares are currently held by insiders of the company.

Hedge funds and other institutional investors have recently been buying and selling shares of the company. Royal Bank of Canada increased its stake in Amerant Bancorp by 10.5% in the third quarter. Royal Bank of Canada now owns 11,189 shares of the company worth $276,000 after buying an additional 1,060 shares in the last quarter. Invesco Ltd. increased its holdings in Amerant Bancorp by 7.4% during the third quarter. Invesco Ltd. now owns 22,433 shares of the company valued at $556,000 after purchasing an additional 1,538 shares during the period. BNP Paribas Arbitrage SA increased its stake in Amerant Bancorp shares by 108.2% during the third quarter. BNP Paribas Arbitrage SA now owns 5,815 shares in the company worth $144,000 after acquiring an additional 3,022 shares during the period. Bank of New York Mellon Corp increased its holdings of Amerant Bancorp shares by 8.3% during the third quarter. Bank of New York Mellon Corp now owns 77,218 shares of the company worth $1,910,000 after acquiring 5,927 additional shares during the period. Finally, Citadel Advisors LLC increased its stake in Amerant Bancorp shares by 28.4% during the third quarter. Citadel Advisors LLC now owns 50,776 shares of the company worth $1,257,000 after acquiring an additional 11,231 shares during the period. 31.13% of the shares are held by institutional investors.

AMTB has been the subject of a number of recent analyst reports. Stephens upgraded Amerant Bancorp from an “equal weight” rating to an “overweight” rating in a Monday, Nov. 8, report. Zacks Investment Research moved shares of Amerant Bancorp from a “hold” rating to a “strong-buy” rating and set a price target of $40.00 on the stock in a Tuesday research report January 4. Finally, Raymond James raised his price target on Amerant Bancorp shares from $34.00 to $38.00 and gave the stock an “outperform” rating in a research report on Friday. One equity research analyst gave the stock a hold rating, five gave the stock a buy rating and one gave the stock a strong buy rating. Based on data from MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus price target of $29.43.

Amerant Bancorp Company Profile

Amerant Bancorp, Inc. operates as a bank holding company, which provides personal and corporate banking products and services in the United States and abroad. The company offers a range of checking and savings accounts, certificates of deposit and money market accounts. It also offers variable and fixed rate commercial real estate loans, loans secured by owner-occupied properties, loans to domestic and foreign individuals primarily secured by personal residence, working capital loans, loan backed by assets, interests in national credit shares, purchased receivables, and small business administration loans, financial institution loans and acceptances, and consumer loans and overdrafts, such as automobile loans, personal loans or loans secured by cash or securities and revolving credit card agreements.

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Huntington Bank review: a wide range of offers and hundreds of branches https://www.ameritas.co.uk/huntington-bank-review-a-wide-range-of-offers-and-hundreds-of-branches/ Wed, 19 Jan 2022 02:53:46 +0000 https://www.ameritas.co.uk/huntington-bank-review-a-wide-range-of-offers-and-hundreds-of-branches/ GOBanking Rates Score Quick take: Huntington Bank offers a wide selection of financial products and services to customers in its service area, but it does not pay competitive interest rates on its deposit accounts. Product range APY Customer service Costs How did we calculate this? Overview of the Huntington Bank Huntington Bank is a full-service […]]]>

GOBanking Rates Score

Quick take: Huntington Bank offers a wide selection of financial products and services to customers in its service area, but it does not pay competitive interest rates on its deposit accounts.

  • Product range

  • APY

  • Customer service

  • Costs

How did we calculate this?

Overview of the Huntington Bank

Huntington Bank is a full-service bank owned by Huntington Bancshares Inc., based in Columbus, Ohio, with a regional focus that primarily serves customers in the Midwest. It was founded in 1866 as The Huntington National Bank and still operates from the same founding location. In June 2021, TCF National Bank joined Huntington National Bank, and the combined company has approximately $175 billion in assets, $142 billion in deposits, and $116 billion in loans.

Huntington operates in an 11-state area that includes Ohio, Colorado, Illinois, Indiana, Kentucky, Michigan, Minnesota, Pennsylvania, South Dakota and West Virginia. It serves its clients through a network of more than 1,100 full-service branches, including 11 Private Client Group offices and more than 1,700 ATMs.

GOBankingRates named Huntington Bank in its annual rankings as having one of the Best Checking Accounts of 2022, as well as the Top Regional Banks and Top 100 Banks of 2022 list.

Huntington Bank Product Details

Here is an overview of the various products and offers of Huntington Bank.

Huntington Bank Chequing Accounts

Huntington Bank offers three main checking accounts designed to meet specific purposes: Huntington 25 Checking, Huntington 5 Checking and Asterisk-Free Checking, as well as a student checking account. All three main accounts come with free checks, but Asterisk-Free is the only one with a $0 monthly maintenance fee. None of the accounts have a minimum opening deposit requirement. Huntington 25 and Huntington 5 both pay interest, but the annual percentage return will vary and might be a better rate if you also have a relationship money market account or relationship savings account.

Huntington 25 Checking is a high-yield checking account that has a monthly fee of $25, but you can avoid this fee when your total relationship balance is at least $25,000. All non-Huntington ATM withdrawal fees will be waived with this account, and Huntington Bank will reimburse you for cash withdrawal fees charged by non-Huntington ATM owners.

Huntington 5 Checking has a $5 monthly fee that is waived each statement period where your total relationship balance is at least $5,000. Up to five non-Huntington ATM withdrawal fees are waived per statement. After that, the fee is $3 per withdrawal.

Starless verification is an easy and inexpensive option if you don’t want to pay monthly maintenance fees. There is a $3 fee for each non-Huntington ATM transaction, plus any fees charged by the ATM owner. The Starless Chequing Account is one of the reasons Huntington Bank was named one of the Best Chequing Accounts of 2022 by GOBankingRates.

Huntington Bank Savings Accounts

You get two choices of savings accounts at Huntington: Relationship Savings and Premier Savings. Both have monthly maintenance fees that can be waived, and neither has a minimum opening deposit requirement. Huntington Relationship Savings provides a relationship rate when you also have a Huntington 5 or a Huntington 25current account.

Relationship Savings has a monthly fee of $10 that can be waived with an average daily balance of $2,500 or when you have a Huntington 5 or Huntington 25 checking account. Rates are based on bank relationship. The unrelated APY is 0.01% on all sales. The APY is 0.02% if you have a Huntington 5 or Huntington 25 current account, and 0.06% if you have a Private Client account.

Premier Savings has a monthly fee of $4 which is waived if you have an average daily balance of $300 or when you also have a Huntington Asterisk-Free checking account. The APY for Premier Savings is 0.01%.

Huntington Bank Money Market Account

Huntington Bank has a unique money market account, called Relationship MMA, which requires you to have a balance of at least $25,000 to earn interest. The $25 monthly service fee can be waived with an average daily balance of $25,000 or when linked to a Huntington 5 or 25 checking account. APY for Relationship MMA is 0.05% unless you have a private client account, which pays an APY of 0.06%.

Huntington Bank CD Accounts

Huntington Bank offers two Certificate of Deposit options: Fixed Rate CDs which have a $1,000 minimum to open and Jumbo Fixed Rate CDs with a $100,000 minimum to open. Terms are one month to six years for fixed rate CDs and seven days to five years for jumbo fixed rate CDs. APYs for both CD types range from 0.01% to 0.03%, with higher balances earning higher rates.

How Huntington Bank Earned Its Scores

Here’s how GOBankingRates looked at several key Huntington Bank features to calculate the overall score.

Product range

This is where Huntington Bank really shines – the selection of products it offers. In addition to several choices of checking and savings accounts, the bank offers money market accounts, CDs, mortgage banking, cash management and foreign exchange services, wealth management and investment services. , fiduciary services, brokerage services and customized insurance brokerage programs.

APY

On the other end of the spectrum, Huntington Bank is not the place to go if you are looking for a solid return on your money. Unless you have a private client account, you won’t earn more than 0.02% APY on savings accounts. The relationship money market account is a little better, paying up to 0.05% APY, but CDs top out at 0.03%.

Customer service

Huntington Bank’s customer service page is dedicated to answering questions and helping you understand its products and services, with the ability to ask questions on the bank’s Facebook and Twitter accounts. If you want to speak to a live person, the general customer service line is open seven days a week, 13 hours a day, so you have plentiful access to an agent.

Costs

Verification without an asterisk has no monthly service fee, but you will incur a fee with the other two verification options unless you maintain a large enough balance in your account. Savings account fees can be waived by opening one of the bank’s checking accounts, but the relationship money market account requires a large balance to waive the fee.

Editor’s Favorite

The range of products and services is unquestionably Huntington Bank’s greatest asset. Even though Huntington is a regional bank, you have access to all the accounts you will find at major national banks.

Huntington Bank vs Competitors

Before choosing a bank, it helps to know how it compares to others in the industry. Here’s how Huntington compares to some of its competitors.

Bank Best for
Huntington Bank Extensive account options for customers in its service area
Bank of America Slightly higher savings rates
hunting bank Extensive national network of branches
Bank of Regions Bonuses and Rewards for Southern and Midwestern Customers

Huntington Bank v Bank of America

Bank of America won’t win any awards for offering a 0.04% higher APY on its savings accounts, but it’s still higher than Huntington Bank 0.01% APY on Premier savings and 0.02% APY on relationship savings. Huntington has the advantage of offering at least one completely free checking account, which Bank of America does not offer.

Huntington Bank v Chase Bank

Chase Bank offers more than 4,700 branches in the United States alone, more than four times as many as Huntington Bank. But even with its weak 0.02% APY on relational savings, Huntington trumps Chase 0.01% APY savings.

Huntington Bank v Regions Bank

Regions Bank offers incentives like an annual savings bonus, which you won’t find in Huntington. But unlike Huntington, Regions doesn’t offer completely free options on its major checking accounts.

Final take

Huntington Bank is worth considering if you live in its service area and are looking for many accounts and services within a bank, as well as access to hundreds of branches. The main downside is that you won’t get high APYs on deposit accounts.

Vance Cariaga contributed reporting for this article.

Rates are subject to change; unless otherwise specified, prices are updated periodically. All other account information is accurate as of January 11, 2022.

Editorial Note: This content is not provided by Huntington Bank. Any opinions, analyses, criticisms or recommendations expressed in this article are those of the author alone and have not been reviewed, endorsed or otherwise endorsed by Huntington Bank.

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About the Author

Claire Tak is a content strategist and copywriter with a background in fintech. His work has appeared in major publications such as FOX Business, Bloomberg and Forbes. She admits to having an unhealthy addiction to snowboarding and when she’s not working, she’s planning her next trip. You can see her shenanigans on Claire’s Holiday.

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3 reasons why I love online banking https://www.ameritas.co.uk/3-reasons-why-i-love-online-banking/ Sun, 16 Jan 2022 13:32:29 +0000 https://www.ameritas.co.uk/3-reasons-why-i-love-online-banking/ Image source: Getty Images Online banking has been a positive experience for me. Here’s why. Key points There are pros and cons to using an online bank. I enjoy benefits like convenience, higher interest rate, and great customer service by using one. I will admit it. I’m the type of person who prefers not to […]]]>

Image source: Getty Images

Online banking has been a positive experience for me. Here’s why.


Key points

  • There are pros and cons to using an online bank.
  • I enjoy benefits like convenience, higher interest rate, and great customer service by using one.

I will admit it. I’m the type of person who prefers not to have to leave the house unless there’s a compelling reason or a hiking trail calls me. Even before the pandemic, I always preferred to stay out of stores and shop as much online as possible. In fact, I can’t remember the last time I bought clothes from a real store.

So it’s no surprise that I’m opting to do my banking online. Here are three reasons why it works well for me.

1. It’s convenient

As a full-time worker with a busy household and a bunch of kids, I don’t have much time to drive all over town to get things done. And by banking online, I save myself a lot of travel — and a lot of time.

When I receive a check in the mail, I don’t have to travel to a branch to deposit it. Instead, I just open an app on my phone, take a picture, and wait for that money to hit my checking or savings account.

Now, you could say that online banking makes it harder to access cash because online banks don’t always have convenient ATMs. But since I don’t tend to do a lot of cash shopping, that’s not a problem for me.

I pay pretty much all my bills online, and when I need to share bills with friends or pay them, I use Venmo, which is linked to my checking account. As such, money is not something I tend to have around or use.

2. I tend to get a slightly better interest rate

Let’s be clear. Right now the interest rates on savings accounts are downright terrible and I currently earn very little on the money I keep in the bank for emergencies. But compared to savings account rates offered by nearby physical banks, the rate I get on my savings is higher. Although that doesn’t mean much these days, during periods of higher interest rates, it does make a difference.

The reason online banks are often able to offer more competitive interest rates is that they don’t have the same overhead as brick-and-mortar banks. And as a customer, you might as well take advantage of it.

3. Customer service is excellent

Not all banks are equal when it comes to customer service. But in my experience, online banking means a smooth experience when I need a customer service representative to help me.

Typically, when I call my bank, I’m instantly connected to someone from customer service. And I discovered that my bank representatives really know their stuff.

This does not mean that physical banks do not offer excellent service. But often, to get this great service, you have to leave the house and talk to someone in person. It’s something I tend not to have time for.

To be clear, online banking has some drawbacks. My bank, for example, has few convenient ATMs. This is not a problem for me, but it can be problematic for someone who tends to need cash. But for me, online banking is a great solution. And if you haven’t explored this option yet, you might want to do some research and see if this is a good setup for you.

These savings accounts are FDIC insured and can earn you 8 times your bank

Many people miss out on guaranteed returns because their money languishes in a big bank savings account earning almost no interest. Ascent’s picks of the best online savings accounts can earn you more than 8 times the national savings account average rate.

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Opinion: Do “ethical” pension funds have a private equity problem? https://www.ameritas.co.uk/opinion-do-ethical-pension-funds-have-a-private-equity-problem/ Wed, 12 Jan 2022 16:29:00 +0000 https://www.ameritas.co.uk/opinion-do-ethical-pension-funds-have-a-private-equity-problem/ These days, managers of public pension plans like to brag about their “ethical” investment policies, for example when it comes to the environment or “diversity, equity and inclusion”. Meanwhile, they are pouring billions of dollars into secret private equity funds in search of additional profits. Now comes even more evidence that some of these private […]]]>

These days, managers of public pension plans like to brag about their “ethical” investment policies, for example when it comes to the environment or “diversity, equity and inclusion”.

Meanwhile, they are pouring billions of dollars into secret private equity funds in search of additional profits.

Now comes even more evidence that some of these private equity managers are in turn using that money for the opposite of ethics.

“Private equity participation leads to a 147% increase in the percentage of … financial advisers at fault” in the companies they take over, report researchers Albert Sheen, Youchang Wu, and Yuwen Yuan of Lundquist College of Business University of Oregon. And the number of incidents of misconduct per advisor increases by 200% after a private equity buyout, they add. “The rise in faults is stronger in firms with higher post-buyout growth in assets under management per advisor and is concentrated in firms whose clients include retail clients.”

Repetition: After private equity took control of a financial advisory firm, the number of incidents of misconduct per broker is typically treble.

The research is based on a study of 540,000 individual financial advisers at more than 14,000 companies registered with the Securities and Exchange Commission between 2000 and 2020, including 275 companies that were taken over by private equity funds. Researchers reviewed customer complaints and disciplinary actions disclosed by the SEC.

Private equity is the hottest major asset class for large pension funds and other institutional investors precisely because private equity managers have been so successful in extracting incremental profits from the companies they buy. .

According to the new study, private equity funds are most likely to buy financial advisory firms with good ethical histories — those with few customer complaints or regulatory penalties — and then send the ruthless figure out. ‘Alec Baldwin of “Glengarry Glen Ross” to increase sales.

“While the misconduct rate of acquired companies is only about 40% of the industry average before the takeover, it becomes comparable to the industry average after the takeover,” the researchers found. Private equity managers “choose targets with untapped ‘margin for misconduct’ and exploit the opportunity to make a profit, perhaps at the expense of clients,” they write. “While PE targets consultancies with above-average balance sheets, the intensity of misconduct at these companies converges toward the industry average post-acquisition.”

In the parlance of the most ruthless investors, any company that has very few customer complaints and ethical sanctions is “almost certainly leaving money on the table.” By “benchmarking” misconduct against the industry average, new owners can “transform assets,” “generate alpha,” and “capture untapped economic potential,” while shifting responsibility for ethics to regulators governments and to the “market”, i.e. to customers. .

But customers are in a better position to protect themselves when a product is simple and depends on loyal customers. Someone who tries to make extra money by selling, for example, quickly collapsing hammers will quickly go bankrupt. In contrast, note the Lundquist researchers, “Financial advice is an opaque and complicated commodity for many that is purchased infrequently, and so there may be scope to take advantage of customers… Increasing company profits charging extra fees or placing customers in unduly expensive financial products can outweigh the costs of occasional violations and associated penalties.

The latest study adds to growing evidence that private equity managers conduct unethical business practices where they find an opportunity. Studies published last year found that increased private ownership of care homes leads to lower standards, higher costs and more deaths. Other research has shown that private equity takeovers can be detrimental to employee morale and quality of life, and deteriorate customer outcomes.

Organizations representing the private equity industry did not immediately respond to requests for comment.

The results should not be a surprise. People running private equity partnerships are given huge, lopsided incentives to ruthlessly squeeze profits at all costs: most of their pay comes from a share of the incremental profits.

In the meantime, they’ve also been rewarded by Congress — both parties — with lavish tax breaks on that salary, breaks unavailable to the middle class. Thanks to the so-called “deferred interest loophole”, a private equity partner can earn $10 million or even $100 million in one year, pay almost no federal taxes at the time, and years , even decades later, only paying discounted “capital gains” tax rates.

Compare and contrast that with other high earners, such as doctors, lawyers, and big business owners, who pay up to 37% in federal income tax. Not to mention the nurse in the hospital or on the bus who pays a tax of 15 cents on the first dollar he earns.

But given the huge benefits private equity managers shower on the rest of us, who’s to say they don’t deserve it?

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Boiling job market means young Americans can boost their savings https://www.ameritas.co.uk/boiling-job-market-means-young-americans-can-boost-their-savings/ Mon, 10 Jan 2022 14:50:21 +0000 https://www.ameritas.co.uk/boiling-job-market-means-young-americans-can-boost-their-savings/ The first months of the COVID-19 pandemic did not exactly inspire the confidence of the American public in the American economy, but gradually things have improved in some sectors. Many millennials and millennials even became more financially confident during the pandemic, according to a OnePoll survey. And now, in part due to a massive labor […]]]>

The first months of the COVID-19 pandemic did not exactly inspire the confidence of the American public in the American economy, but gradually things have improved in some sectors.

Many millennials and millennials even became more financially confident during the pandemic, according to a OnePoll survey. And now, in part due to a massive labor shortage, momentum is still on their side. They are witnessing an unprecedented job market, where even those with little or no work experience carry more weight than ever before. Some companies offer applicants higher salaries than in previous hiring periods, along with signing bonuses and other incentives.

An important aspect of this great opportunity for young workers is that it gives some the luxury of increasing their savings rate and becoming more consistent with their financial plan for the present and the future. The OnePoll survey reported that the financial confidence of younger generations of adults has increased in part thanks to better saving habits they acquired out of necessity during the pandemic. Some said they started budgeting for the first time, and in addition to monitoring their spending habits, they used some of their increased savings to pay off student loans and other debts.

It is important that we steer our young adults into good saving and investing habits now while they have the capacity to earn increased income. And it’s encouraging to see that many young Americans are focused on maintaining their savings and learning to adapt in order to prioritize building a stable financial future. This job market may not always be reality, so it’s good to build a treasure chest when given the chance.

Here are some tips to get them started:

  • Invest when you are young. You don’t have to wait to invest until you have a lot of money. The power of compound interest makes time your best ally. When you start early, you can accumulate much more wealth with less capital invested than if you start investing later. In fact, you can start small – $ 50 to $ 100 per month – and increase the amount as you earn more. Investing regularly and automatically makes your money work harder than you do. The advantage of starting an investing program before you start making a lot of money is that you learn to live on less.
  • Sharpen your money management. I cannot stress enough the importance of budgeting. Young people – people of all ages, for that matter – start having financial problems and putting their financial futures in jeopardy when they go crazy about credit cards and start living beyond their means. Sticking to a monthly budget can save you from such difficulties. You will see areas of spending that you can reduce to save more. It’s like giving yourself a raise.
  • To diversify. Don’t invest all of your money in a big stock tip that you read or received from a friend. Spread it over an investment portfolio, which is less likely to lose money. The market will go up and down, but the way to protect your portfolio is to have some investments performing while others don’t. The easiest way to do this is to use a mutual fund or an exchange traded fund (ETF).

At some point, you’ll want to establish a strategic asset allocation. There are three basic types of assets: stocks, bonds, and cash instruments (such as CDs and money market accounts). The biggest risk is stocks – a greater chance of losing money for the higher potential gains – followed by bonds, then cash. As a general rule, the younger you are the more you will benefit from a higher allocation to stocks, but you may also want to allocate some to bonds and cash. Strategically, it makes sense to maintain a balanced mix of stocks, bonds and cash.

  • Establish an emergency cash fund. This way, if large expenses arise, such as an auto repair, you won’t have to dip into your investments to pay for them. The longer your money is invested, the better its growth potential (and the less likely you are to lose it).
  • Investing tax deferred. Even if your employer doesn’t offer a retirement savings account, you can open your own. Anyone with earned income under age 50 can contribute up to $ 6,000 per year to an Individual Retirement Account (IRA), in which you choose which securities to invest. With a “traditional” IRA, you can deduct this amount from your current income tax, and the account grows tax-deferred until the money is withdrawn. If you open a Roth IRA, you don’t get the tax deduction, but you won’t have to pay tax on withdrawals (as long as you don’t withdraw money for at least five years from your first contribution).

Whether you’re a high school or college graduate, or just transitioning with some free time, don’t get too caught up in the pursuit of money. Pursue your interests and the money will likely follow. Invest the time to learn about the jobs that interest you.

And like the importance of having a diversified portfolio, so have a balanced life. Invest in meaningful friendships and useful hobbies that develop healthy habits and expose you to new opportunities.

Start now and your rewards will increase over time. Your career, friends, family and activities are all seeds that you can plant now for a secure and happy future.

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Chris Murray (murrayfinancialgroup.com) is the founder of Murray Financial Group, Inc. and the author of The Financial Protector. Murray started his business in 1995 to help individuals and families overcome the challenges of creating a stable financial foundation. He has passed the Series 65 Securities Exam and is licensed in Maryland Life and Health Insurance. Murray has been recognized nine times as best financial planner by Frederick Magazine and hosts a popular 24-year-old radio show, Your Financial Editor, which has won numerous awards.

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What the value of the US dollar means to you in real life https://www.ameritas.co.uk/what-the-value-of-the-us-dollar-means-to-you-in-real-life/ Sat, 08 Jan 2022 13:32:21 +0000 https://www.ameritas.co.uk/what-the-value-of-the-us-dollar-means-to-you-in-real-life/ Image source: Getty Images The strength of the US dollar is a good indication that the stock market is doing well. Key points The rise and fall of the US dollar affects us all differently. The key is to prepare for the ups and downs of the economy. The value of the US dollar increases […]]]>

Image source: Getty Images

The strength of the US dollar is a good indication that the stock market is doing well.


Key points

  • The rise and fall of the US dollar affects us all differently.
  • The key is to prepare for the ups and downs of the economy.

The value of the US dollar increases and the value of the US dollar decreases. But what does this mean for ordinary Americans? How are we impacted by what happens when our currency goes up or down?

What causes a rise or a fall?

Part of an investor’s job is to make predictions. One of the things investors around the world are trying to predict is which countries are likely to produce the most profitable companies, which markets are likely to benefit from the largest increases in value.

Let’s say you are an investor here in the US and based on a few key companies in India you think the Bombay Stock Exchange (BSE) will set the tone for the rest of the world soon. You want to take advantage of the profits that you think are just around the corner, so you invest. Because it is an Indian stock exchange, you exchange dollars for rupees and make your investments.

The same is true when investors around the world look at the US market. If it seems to them that U.S. companies are about to have a growing season, they will trade their currency for U.S. dollars and invest in stocks, bonds, mutual funds, real estate, and real estate. other American growth vehicles.

The more investors demand dollar investments, the more the value of the US dollar rises. When you hear that the dollar is falling, you know it’s because the demand for US investment is falling. When it’s in place, demand is on the rise.

What that means for the average American depends on where they are in life.

Products made in the United States

As the cost of products made in the United States increases, everyone, including Americans, begins to buy more imports. US retailers are the first to buy imports to keep prices low. American families buy from these retailers to save on the products they want and need.

The stronger the dollar and imports are the more profitable alternative, the less demand there is for American products. The lower the demand, the better the chances of layoffs, especially in the manufacturing sector.

Whether that’s good news or bad news depends on who you are. For someone looking for a job in manufacturing, a strong dollar is bad news because it means there are fewer jobs available.

Purchasing power

Suppose a couple want to spend time traveling abroad. A strong US dollar is a great travel companion. This is because a single US dollar has more purchasing power in a country with a weaker currency. Depending on the strength of the dollar and the weakness of the currency elsewhere, this couple may end up with enough cash to extend their vacation.

And for an American family with a secure job, the ability to purchase imported goods made abroad cheaply can be good news, leaving money in their bank accounts that can be used for other purposes. .

Tourism

When the dollar is strong, investors around the world want to participate in the action. However, tourists don’t. This is because it becomes more expensive for foreigners to travel to and around the United States when they exchange their currency for ours, which means they are losing money.

Is this good news or bad news?

A strong dollar means the US economy as a whole is doing well, and that’s good news for many sectors. Whether this is good for a particular individual or family depends on the industry they are employed in, whether they are a business owner, where they live in the United States, their purchasing habits, and where they are. other factors that make them unique compared to their neighbors.

At the end of the line

Most things in life are cyclical, and few things last forever. This is undoubtedly true for everything related to the economy. Just as we have bull markets and bear markets, high interest rates and low interest rates, the strength of the US dollar goes up and down. What this means to you depends not only on where you are in life, but also how prepared you are to face the ups and downs of the economy.

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Fed minutes paint picture of central bank ready to quickly abandon its ease policy https://www.ameritas.co.uk/fed-minutes-paint-picture-of-central-bank-ready-to-quickly-abandon-its-ease-policy/ Wed, 05 Jan 2022 18:44:00 +0000 https://www.ameritas.co.uk/fed-minutes-paint-picture-of-central-bank-ready-to-quickly-abandon-its-ease-policy/ Federal Reserve officials appeared eager at their December meeting to develop plans to move away from their current accommodative policy stance given that inflation was likely to be higher than expected over the next two years. , according to the minutes of their December meeting released Wednesday. “Participants generally noted that, given their individual outlook […]]]>

Federal Reserve officials appeared eager at their December meeting to develop plans to move away from their current accommodative policy stance given that inflation was likely to be higher than expected over the next two years. , according to the minutes of their December meeting released Wednesday.

“Participants generally noted that, given their individual outlook for the economy, labor market, and inflation, it might become warranted to raise the federal funds rate earlier or at a faster rate than that. that the participants had anticipated, “according to the summary.

At the meeting, Fed officials had a broad discussion on how to move policy away from its current easy position by raising rates and also reducing its balance sheet by $ 8.67 trillion.

A minority of officials were eager to start reducing the balance sheet, which is another form of monetary policy tightening.

“Some participants… noted that it might be appropriate to start shrinking the size of the Federal Reserve’s balance sheet relatively soon after starting to raise the federal funds rate,” the minutes said.

After reading the minutes, Katherine Judge, an economist at CIBC Securities, said she believed the Fed would start reducing its balance sheet in the April-June quarter.

It’s much faster than the last cycle. In 2015, the Fed waited two years after the first rate hike to reduce its balance sheet.

Officials said 2015’s cautious approach was not appropriate this year.

“Participants noted that the current economic outlook is much stronger, with higher inflation and a tighter labor market than at the start of the previous episode of normalization,” the minutes said.

Several officials have expressed concern about vulnerabilities in the Treasury market and how this could affect the tightening balance sheet. But other officials noted that the Fed has a new permanent pension facility to support money markets.

The minutes show that “nearly all” Fed officials have revised their inflation forecasts upward this year and “many” have increased their forecasts for 2023. Fed officials and staff predict that the inflation would drop considerably this year. But they stressed that the risks were on the upside.

“Inflation fears dominated the discussion,” said Ian Shepherdson, chief economist at the Hall of Fame.

Officials were also optimistic about the job market. Several officials said they believe the labor market has already met the central bank’s “maximum jobs” target, opening the door to rate hikes.

The Fed’s policy has been remarkably easy since the onset of the coronavirus pandemic in early 2020. Many economists urged the central bank to take a more neutral stance last year, but the central bank has kept its footing on gas – keeping rates close to zero and buying treasury bills and mortgage-backed securities.

Many officials did not see the omicron variant as fundamentally changing the path of economic recovery.

The central bank has now pivoted sharply and, at its December meeting, agreed to end its asset purchases in mid-March. The central bank has forecast three rate hikes this year. The market sees a strong possibility that the first hike could come at the March Fed meeting.

Economists note that a fed funds rate of 2.5% is generally considered the “neutral” fed funds rate that neither stimulates nor slows the economy.

DJIA actions,
-1.07%

SPX,
-1.94%
fell sharply after the Fed minutes were released. The yield of the 10-year Treasury bill TMUBMUSD10Y,
1.727%
rose above 1.7%.


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Best financial resolutions for your 20s, 30s, 40s, 50s, 60s and beyond https://www.ameritas.co.uk/best-financial-resolutions-for-your-20s-30s-40s-50s-60s-and-beyond/ Mon, 03 Jan 2022 19:32:30 +0000 https://www.ameritas.co.uk/best-financial-resolutions-for-your-20s-30s-40s-50s-60s-and-beyond/ Money / Financial Planning filadendron / Getty Images According to Fidelity’s 2022 Financial Resolutions Study, nearly 7 in 10 Americans are considering making New Year’s resolutions that have something to do with money. This puts financial improvement at the top of physical health as America’s most popular winter self-promise. Save more money: unplug those devices […]]]>

filadendron / Getty Images

According to Fidelity’s 2022 Financial Resolutions Study, nearly 7 in 10 Americans are considering making New Year’s resolutions that have something to do with money. This puts financial improvement at the top of physical health as America’s most popular winter self-promise.

Save more money: unplug those devices that increase your electricity bill
Discover: Money-saving resolutions that you’ll actually keep

The most common financial resolutions are to save money, reduce debt, and cut expenses – all noble wishes, indeed – but different age groups might deliver on their promises better depending on their respective stages of life. the life.

Here is a look at the resolutions suggested by experts over the decades.

Important: $ 1 Million Isn’t the Standard Little Nest anymore – here’s how much most Americans think you really need to retire

1920s: deciding to save and invest for the future

Julie Ramhold, consumer analyst at DealNews.com, advises young adults to promise to put money aside for retirement, even though it may seem like a long way off.

“It might seem too early to do it, but given the economy as it is and the issues plaguing young professionals, it’s best to start putting money aside now, even if you don’t work for a place that contributes to a 401k, “Ramhold said.” Open your own account if you have to, and even if you can only set aside a little, start doing it now – this little bit will accumulate over time. ”

While not specifically for retirement, time is any investor’s most powerful weapon and you’ll never have more than your 20s. If you don’t do a little now, you will need to do a lot in the future.

“Start investing to a certain extent,” said Omer Reiner, licensed real estate agent and president of FL Cash Home Buyers. “The easiest way to do that is to open an investment brokerage house and buy index funds that track the entire stock market. You have an advantage as a young person because your money has plenty of time to grow.

Explore: These New Years Resolutions Can Save You $ 1,000 Or More

30 years old: decide to free yourself from your debts

If you saved money in your twenties – or even if you didn’t – the best resolution you can make in your thirties is to enter your fifties debt-free. Between growing kids, aging parents, and ever-higher bills, quarantine can get expensive. The last thing you need is a bunch of IOUs hanging over your head – with interest.

“If you have lingering debt, whether it’s student loans, mortgage payments, a car, or even a large amount of credit card debt, it’s best to try to pay them back as quickly as possible, ”Ramhold said. “This will allow you to save more once you take care of it, as well as spending money on more of the things you want to do like family vacations, international travel, investments or whatever in between. both. ”

Good to know: 17 biggest budgeting mistakes you make

1940s: decide to start estate planning

While your 40s are the most rewarding years for the most part, it can also be a decade of intense financial pressure. Whether you have elderly parents above you, children below you, or both, unresolved issues are bad news for all generations involved. It’s time to start preparing for the inevitable.

“You may be looking after parents and aging children now,” said Renee Fry, CEO of estate planning firm Gentreo. “That means you have to line up all your ducks and make sure your parents have up-to-date documents as well. The three essential estate planning documents are wills, health care powers of attorney, and powers of attorney for financial assets. “

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Helpful: Tips for Keeping Your Finances Tidy Without Sacrificing What You Want

50 years old: decide to increase your pension contributions

When you turn 50, the window on your time to save for retirement quickly begins to close, but so does the opportunity. This is the age at which the IRS allows you to start making catch-up contributions to 401 (k) plans, IRAs, and other retirement accounts. Since your investments won’t have as much time to accumulate, it’s important to put as much as possible into tax-privileged accounts while you can.

“Even if you only work part-time, it’s a good idea to increase your pension contributions during your 50s so you have more cash on hand when you retire,” Ramhold said. “Make sure you contribute as much as you can afford, but don’t push it too hard – you’ll want to leave enough funds so you can do things you love without saving all of your money for later.”

1960s: Determined to cut spending

Both to save money for retirement and to practice a frugal life when you finally retire, 60 is the right age to start cutting back on your budget.

“A lot of people will be preparing to retire in their 60s if they can, so it’s best to check your spending during this time,” Ramhold said. “Eliminate anything that is superfluous, especially services you don’t use often, but also check your plans for things like internet and cellphones – you may be able to downgrade to a cheaper plan without losing a lot. “

Cut Costs: 35 Unnecessary Expenses You Need To Cut From Your Budget Now

… And beyond: decide to pass it on

By the time you reach your golden years, you will have a valuable asset to pass on to your posterity, even if you are on a fixed income: financial knowledge. It is a heritage worth receiving.

“If you’re 60 or older, teach,” said Greg Wilson, chartered financial analyst, co-owner of ChaChingQueen.com, a site about living well on a budget. “You know so much. Find a way to share your knowledge and experiences. It will be as healthy for you to do this as it is for your audience.

More from GOBankingTaux

About the Author

Andrew Lisa has been writing professionally since 2001. Award winning writer Andrew was once one of the youngest nationally distributed columnists for the nation’s largest newspaper union, the Gannett News Service. He worked as the business editor for amNewYork, the most circulated newspaper in Manhattan, and as the editor for TheStreet.com, a financial publication at the heart of the Wall Street investor community in New York.



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Here are my 5 most compelling stock movements for 2022 https://www.ameritas.co.uk/here-are-my-5-most-compelling-stock-movements-for-2022/ Sat, 01 Jan 2022 10:30:00 +0000 https://www.ameritas.co.uk/here-are-my-5-most-compelling-stock-movements-for-2022/ A New Year is a wonderful time for making financial plans. As the timeline changes, new opportunities open up for urgent investments like qualified pension plans. Now that the old fiscal year is also largely over, investors can put aside short-term targeted practices such as harvesting tax losses and instead focus on longer-term financial goals […]]]>

A New Year is a wonderful time for making financial plans. As the timeline changes, new opportunities open up for urgent investments like qualified pension plans. Now that the old fiscal year is also largely over, investors can put aside short-term targeted practices such as harvesting tax losses and instead focus on longer-term financial goals for their money.

With all of the possibilities now available in the New Year, these are my five most compelling stock moves for 2022. I believe in each one so much that I commit to putting my own money where my mouth is to make it. reality for me and my family.

Image source: Getty Images.

# 1: I’ll contribute a Roth IRA backdoor

In 2022, people under 50 with earned income can contribute up to $ 6,000 to a Roth IRA to help them save for retirement (the limit is $ 7,000 for those 50 and over. ). The challenge with Roth IRAs is that if your total income becomes high enough, your ability to contribute begins to gradually decline. In 2022, elimination ranges start at $ 129,000 for those who are single or heads of households, $ 204,000 for those married filing jointly, and $ 0 for those who are married filing separately.

In my household, our salaries are low enough that we can potentially make direct contributions to the Roth IRA, but we do not fully control our not won Income. This unearned income also counts towards these phase-out ranges. For example, when Warren Buffett bought out a power generation company in which I owned, the forced sale resulted in a capital gain that increased our household income for the year.

Doing Roth IRA backdoor contributions instead of direct Roth IRA contributions, our household can avoid the risk of unearned income pushing us past the limit. This way, we can make contributions early in the year and not have to worry about having to withdraw them later if something happens to push our income too high.

N ° 2: I will contribute to the 529 accounts of my children

529 accounts can be used to fund eligible educational expenses. The money is paid after-tax at the federal level, but states can offer deductions to people who contribute to the plans. Once in the plan, the money can accumulate tax-deferred, and it can come out tax-free if it is used to pay for these eligible educational expenses.

In the state I currently live in (Ohio), parents can deduct $ 4,000 per child per year for contributing to an account that child is the beneficiary of. Different states have different deduction rules, so check with your state when considering a contribution.

I intend to contribute up to the state deductibility limit, but I do not intend to exceed this amount. The main reason is that college costs are extremely unpredictable up front. The price depends on whether children choose to go to university, or they go to university, and What (if applicable) the aid to which they are entitled and which does not need to be repaid.

Because these costs are so unknowable and because 529 plans can alone being used in a tax efficient manner to pay for education expenses, I have no desire to save too much in these accounts. My state’s tax-deductible amount provides an opportunity to build a decent balance over time without risking too much if the expenses for educating the child turn out to be cheaper than expected. This is why it serves as the upper limit to which I intend to contribute.

N ° 3: I will maintain my bond scale between six and seven years

Bond ladders can be a reasonable place for the money you think you need to spend out of your portfolio over the next five years or so. With two kids approaching college age and two more not too far behind them, I’m looking down for about a dozen consecutive years of potential. very high expenses. While the 529 plans are a big help, the bond ladder gives us the ability to contribute beyond if needed and if we choose to do so. If this money weren’t needed for university, I’m sure we could easily use it elsewhere.

My goal for the bond ladder is five years of potential expenses that the ladder might have to cover, but due to the recent surge in the stock market I was able to increase it to seven. The big challenge with bonds is that they mature and expire, so if you want to maintain a bond ladder, you have to replenish it over time.

Due to low interest rates, investment grade bonds are not keeping pace with inflation at this time. As a result, I don’t want to increase my bond ladder beyond seven years even though stocks continue to soar. On the other hand, it usually doesn’t make a lot of sense in the long run to sell stocks when they’re down to invest more in bonds. So if stocks continue to do well I will keep my bond ladder at seven years, but if they go down I can afford to let the bond ladder narrow as bonds mature and still be at- above a five-year goal.

# 4: I will contribute my Roth 401 (k)

One of the best parts of 401 (k) style plans is that they offer an automatic investment for your retirement right from your paycheck. And the main advantage of Roth-style plans over traditional-style plans is that once the money is in a Roth, it can be compounded in a completely tax-free manner (as opposed to just carrying over money). tax) for your retirement.

Since I have a Roth style 401 (k) at my disposal, this is where I direct my automatic paycheck contributions. I’m leading the investment in an equity-focused mutual fund that I hope can grow over the decades by the time I expect to take advantage of the money in retirement. Hopefully the combination of automatic investing, tax-free growth, and long-term capitalization can build a decent nest egg out there when I need it.

N ° 5: I will contribute to my health savings account

Because I am on a high deductible health insurance plan, I have the option of contributing to a health savings account. Since my health insurance plan has a high deductible, I To do contribute to this health savings account because I have to pay almost all of the medical expenses that my family regularly faces. Putting money in that account gives me the money to pay those doctor bills when they come in.

Due to the costs of using braces for four children, I spent most of the money that I managed to contribute to my health savings account over the years that it m ‘has been accessible. Still, if all goes well and we stay healthy, 2022 could be the year we reach the point where our health savings account balance peaks at one year for network costs.

If we reach this point, then I’ll be ready to start investing in the long-term growth-oriented investment choices in the plan, as opposed to just building up cash. Since a health savings account can be used at any time for medical expenses Where As a supplemental pension plan once you reach age 65, long term targeted investments could be of great help in this account.

If our balance doesn’t increase enough, then I’m still very grateful for the tax benefits that come with contributing (and then using) a health savings account. The tax-deductible contribution and tax-free use of that money to pay for health care costs makes it much cheaper than using after-tax cash to pay the same bill.

I’m here for the long haul

Four of my five most compelling steps for 2022 involve pouring new money into investment accounts. Only one – the bond ladder – depends on what the stock market does throughout the year. Even so, if the stock market falls, my plan is one that becomes relatively more bullish on stocks by not selling those stocks while they are down (thus letting the bond ladder narrow as the bonds mature).

It works because I follow an asset allocation strategy that differentiates between short term money and long term money and invests differently in each fund. This way, even if the market dips, I don’t have to sell stocks when they are depleted to cover short-term costs and instead can keep that money invested in the hope of a longer recovery. term.

When the market is soaring, this strategy tends to dampen my overall returns. In times of greater uncertainty where the market can crash at any time, this is what keeps me invested even if the fear sets in.

Start now

If it’s a strategy that sounds compelling to you, maybe now is a great time to put the pieces in place for yourself. With the market nearing an all-time high and the New Year bringing with it the Annual Capital Gains Reset, your flexibility and your assets may very well be in a better position than ever to make this a reality.

So make today the day you start building a stronger end-to-end financial strategy. Doing so will give yourself a great chance to navigate 2022 profitably, virtually no matter what the market is doing.


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5 investment tips for people 20 and over who don’t know where to start https://www.ameritas.co.uk/5-investment-tips-for-people-20-and-over-who-dont-know-where-to-start/ Thu, 30 Dec 2021 15:31:18 +0000 https://www.ameritas.co.uk/5-investment-tips-for-people-20-and-over-who-dont-know-where-to-start/ If you are new to investing, it can be difficult to know where to start. Financial planners recommend starting with some research and then automating your investments to make things easier. They recommend starting as early as possible and keeping it simple. Read more stories from Personal Finance Insider. Over the past year and a […]]]>

  • If you are new to investing, it can be difficult to know where to start.
  • Financial planners recommend starting with some research and then automating your investments to make things easier.
  • They recommend starting as early as possible and keeping it simple.
  • Read more stories from Personal Finance Insider.

Over the past year and a half, the topic of investing has been making headlines and capitalizing on conversations among friends, colleagues and family. During the pandemic, we have seen a surge in the economy, an increase in the number of cryptocurrency-conscious people, and more than 15% of people investing for the first time.

However, a group of people, the Gen-Zers (those born between 1997 and 2012) did not rush to invest. According to a GOBankingRates survey, 34% of Gen Z respondents haven’t invested their money at all, and 62% of survey respondents say their financial situation warrants professional advice.

So if you’re new to investing, here’s what five financial advisors consider a good place to start.

1. Automate your investments

According to financial planner Adam Scherer, a key point to consider when investing is consistency. That is why he recommends setting up an automated recurring deposit scheme. It’s not as difficult as it sounds: Most online banking and investing portals allow you to set up a recurring payment to your investing account, just like you would a bill payment.

This strategy has the added benefit of creating an investment strategy called the dollar cost averaging, which regularly puts the same amount of money in the market regardless of market patterns, thus resisting the impulse to “synchronize the market.” Or withdraw money as it goes down and put money in as it goes up. Only the professionals have business trying to time the market – and it is still extremely difficult for them.

“Whether you’re directing a portion of your paycheck to an investment account or making periodic, recurring investments in an app, making it easy to save,” says Scherer.

2. Keep it simple

When you first dive into the world of investing, financial planner Joseph Favorito says it’s best to keep your strategy simple.

“Build your portfolio around low cost passive index funds where possible. Wall Street is constantly trying to play on the fears and emotions of investors with new products like annuities, ESG funds and equity-linked CDs, ”says Favorito. “These are all ways to make you pay more to buy the same investments and feel better with a mirage. You’d better stick with traditional index funds that offer consistent performance and wide, diversified market exposure. “

3. Take the time to learn

Even though it seems tempting to rush out and take the plunge, financial planner Jay Zigmont recommends investing only in things you understand.

“Take the time to learn about investing before you start,” says Zigmont. “You can work with a CFP® professional to learn more about investing or learn on your own. Either way, you need to understand what you are investing in before you buy. “

Scherer also recommends taking the time to research the costs associated with your platforms, accounts, and investment funds. “These have the potential to create a ‘drag’ on your overall investment gains which, in turn, impact the likelihood of success for your financial planning goals,” Scherer explains.

4. Start as soon as you can

When you feel like you’ve done enough research and are ready to start, financial planner Jay Karamourtopoulos recommends starting as soon as you can because delaying your start can have a long-term impact. This is through compound interest, in which interest earns interest on itself. The longer your money has been in the market, the more it can earn – and even a few years make a big difference.

“Investing and saving early in your life and career will have a huge impact on your long-term and retirement savings,” says Karamourtopoulos. “Starting now will prevent you from having to catch up later in life. “

5. Diversify your investments

One final tip that financial planner Jason Field says is important for newbies to know is the art of having variety in your investment portfolio. This is called diversification.

Just like you wouldn’t keep all of your proverbial eggs in one basket (what if you drop the basket?), You shouldn’t plan to keep all of your money in one stock or in the same market. By investing your money in different ways, you protect yourself against any loss if a stock or market falls.

“Diversification plays an important role in risk management. Many people use mutual funds or ETFs to gain broad exposure to different markets and diversify their portfolio from a single stock, ”says Field.


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