The term “investing” may conjure images of the frenetic New York Stock Exchange, or perhaps you think it’s something only meant for those wealthier, older or further along in their careers than you. But this couldn’t be further from the truth.
When done responsibly, investing is a great way to grow your money. And many types of investments are accessible to virtually anyone regardless of age, income or career. Such factors will, however, influence which investments are best for you at this particular moment.
For example, someone close to retirement with a healthy nest egg will likely have a very different investment plan than someone just starting out in their career with no savings. Neither of these individuals should avoid investing; they should just choose the best investments for their individual circumstances.
Is 2022 a good time to start investing?
Yes, if you’re invested for the long haul, says certified financial planner Austin Litvak, director of Research for O’Brien Wealth Partners in Boston.
“Certain things going on with today’s market are unique to history and that’s not going to last forever. If you’re a long-term investor, the Federal Reserve is still credible and will get inflation under control,” Litvak says.
It’s normal to worry about your investments, especially in a year that has seen major drops in both the stock and bond markets. And getting into investing at a time of such volatility can feel scary. Nevertheless, taking an investment approach that’s appropriate for your particular financial situation and time horizon — and features the right asset allocation for you — means you won’t miss out on any potential recovery.
The bottom line: Short-term lows in the stock and bond markets due to factors such as global unrest, a pandemic and inflation, shouldn’t keep you from investing entirely, especially if you’re diversified across a range of assets and have a long-term plan in place.