Am I better to keep my money in the bank and wait or invest now?
Tuesday, April 13th, 2010 at
4:24 pm
I have heard that the stock market will crash again around 2010 or 2011. Should I invest now or wait? If I invest now should I buy stocks or property? If I invest in stocks what is the best to buy?
Repossession
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Tagged with: Buy Stocks • Invest Stocks • Money In The Bank • Stock Market
Filed under: property crash
It' s uw geld en uw besluit.
Goed geluk!
The people who are telling you the stock market will crash in year “X” or rise in year “Y” are lying to you…or they are stupid. Well unless they just so happen to be the smartest investors in the world. No one knows when the market will rise or crash.
Patterns can help us predict when a recovery might happen. A lot of economic indicators show that the recession might be easing. However, it is hard to say if the stock market is rising based on emotion or real economic indicators. Simply put, the economic indicators show that our economy is lousy; however, the lousy indicators are much better than what the market feared.
Should you invest or put money in the bank? It depends.
How old are you?
How much money do you have saved?
How are your assets diversified?
Investing in the market has a risk. Stocks could crash especially after the massive increases in the market the last several months. On the other hand keeping money in the bank can result in definite losses as well. If you figure our money is losing purchasing power at the rate of 3-5% per year, unless you get comparable interest rates from your bank, you will lose purchasing power each year. A dollar buys more today than it will in 5 years….the risk of putting money in the bank is that your money will increase slower than the purchasing power of your money will increase.
Rules of thumb:
1. Keep 3-12 months of expenses worth of cash in the bank (a lot of people say 6 months…however, it really depends on your economic situation….a 20 year old single male does not need 6 months in the bank…but a 50 year old should have more than 6 months of money).
2. Invest via a variety of investment vehicles. Buy bonds/treasuries/equities/etc.
3. Dollar cost average. Basically, don’t invest all your money in one day. Invest small portions over a long time. Why? That way hiccups in the market like crashes won’t destroy your portfolio.
Met de manier u de vraag stelde, betaal onderaan uw schuld en verlaat de rest in de bank.
This is not the right place to get real advice, you need to talk to a professional. This is mostly for fun. And dont take any answer too serious
investeer in echte langere staat. .the u houden het, wordt waardevoller het….