2021 is already off to a crazy start! If you’ve taken our advice and are planning to start investing this year, then you may be uneasy about what’s happening on Wall Street. Millennials have been tempted into investing because of apps like Robinhood, Webull and Stash, but Mark Matson advises against using these apps. If you want to know how to invest without them, keep reading!
- Discipline and diversification. Matson encourages everyone to avoid following the herd when it comes to investing. Don’t follow the next big hype, stay disciplined and invest safely in things that you trust. He also says that it is important to diversify and maximize potential growth by distributing your money among different kinds of investments.
- Avoid IPOs. IPOs tend to be volatile and rise and fall seemingly willy-nilly [see: Game Stop (GME)]. If you want a long-term portfolio that grows over time, Matson advises that you stay away from hot IPOs and stick with large S&P 500 funds, ETFs and other index funds.
- Maximize your retirement investing first. The bottom line is that you invest for your future, and what better way to do that than plan for retirement. If you have a 401(k) through your job, you should maximize it by looking for ETF and Index fund options within your 401(k) account. If you have an IRA or other retirement account, the advice is the same. Plan for your future as much as you can.
The gamification of investing can turn young people into gamblers, and lose them a lot more money than anticipated. And, as we’ve seen in the past week, these apps probably don’t have your best interest in mind. Instead, Matson advises that we focus on simple investments like those mentioned above. Still, Matson is bullish on America in 2021, even after the political and economic chaos of last year.
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