Dear Kim,
I have done some investing over the years, but I haven’t made it a priority. I find it intimidating, but with the uncertainty of the economy, I want to try to “recession-proof” my money and assets as much as I can. What do you recommend?
Sincerely,
Debt-Free Dreamer
Dear Debt-Free Dreamer,
Ideally, you want your assets invested according to when you plan to use them. For example, funds you expect to need in the next couple of years should generally be kept in cash or very short-term investments. This helps minimize fluctuations in value so you’re not caught in a market correction right when you need the money.
For intermediate-term needs, say, three to seven years, you can choose investments aligned with that time horizon. The goal is to reduce the amount of volatility you might experience when it’s time to withdraw the funds.
For long-term goals, 10 years or more, the stock market may be worth considering. Historically, long-term market returns have outpaced inflation and helped offset the impact of taxes. That said, every investment carries risk. It’s important to carefully evaluate those risks and fully understand what you’re investing in before committing your money.
If investing feels intimidating, you’re not alone. Consider speaking with a qualified professional who can guide you through the details and help you build a strategy that fits your comfort level and goals. Good luck.
Kim
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