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Smart money: your money in 2023: investing in the stock market

The investment information provided on this page is for educational purposes only. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell certain stocks, securities, or other investments.

Welcome to the NerdWallet Smart Money podcast where we answer your real money questions.

This week’s episode focuses on investing in 2023.

Watch this episode on any of these platforms:

Our view

Investors are likely to experience a wild ride in 2022, depending on how much they let stock market fluctuations affect them. And that’s one takeaway from last year: don’t let everyday ups and downs bother you too much. Acting out of fear can lead to decisions you later regret. And trying to time the market is not a smart investment strategy.

Many financial advisors will tell you that as long as you make regular contributions to your accounts through highs and lows—a strategy called “dollar cost averaging”—you’re on your way to accumulating wealth in the long run. And if the stock market continues its erratic streak in 2023, consider not looking too often into your retirement accounts so you don’t feel uneasy.

If you are new to investing and want to get started this year, start by understanding your goals and which accounts can help you reach them. For many newbies, this means setting up a retirement account. Workplace accounts like 401(k) are an affordable option for many. These are individual retirement accounts, both Roth and traditional.

Our advice

  • There is nothing wrong with being boring: A simple, well-diversified portfolio gives more reliable returns than an investment strategy where you try to time the market.
  • Think long term: Markets go up and down, so focus on your time horizon so you don’t get caught up in daily fluctuations. The time horizon simply means how long you will need to use the money invested.
  • Do it step by step: If you are new to investing, explore the options available, including retirement accounts, brokerage accounts, or robot advisor accounts, to see which ones can help you reach your investment goals.

Have a money question? Write or call us at 901-730-6373. Or you can write to us at [email protected]. To listen to previous episodes, go to podcast homepage.

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