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© 2022 Fairygodboss. All rights reserved.
I'm a financial advisor - Ask me anything about the market!
First: The headlines are saying this is the worst time in the market since the late 80s. But none of the reports actually explain what’s going on or how it affects us.
Now: I can’t comment on specific investments or make recommendations, but I can explain things in plain English. Like what’s the difference between a stock and a bond. Or whether contributing to a retirement plan through an employer is a good idea. Hit me with your biggest questions.
Misherald BrownAmbitious gogetter who always chases her dreams
74
04/12/20 at 2:32AM UTC
Is this a good time to make any major purchase? I'm currently needing to purchase a car but I have friends who've been eyeing homes and we are starting to wonder if this will be like Summer of 08 when everything was kind of a buyers market
SheIsSoMoneyMaking more money for women and #girlbosses
46
04/13/20 at 3:37PM UTC
This question is similar to the previous poster about buying a house. But a car is a little different. If you’re buying a car you can afford (including insurance, maintenance, etc) then this is a great time. I’d just spend some time on whether it’s affordable and how secure is your job.
Shelby CCreative Consultant-Sales & Marketing-Writer
1.92k
04/10/20 at 8:37PM UTC
Is this a good time to buy a new house? I want to take advantage of the low interest rates and time off to move.
SheIsSoMoneyMaking more money for women and #girlbosses
46
04/13/20 at 3:35PM UTC
Hey Shelby. I think buying a home depends on a few things: what does your down payment look like, what does your credit score look like, and do you need to sell your existing home. Rates are great but a lot of people are scared and aren’t making changes right now, which means it might be harder to find a buyer. I’d recommend finding a realtor in your area to discuss your local market.
Hope Angel WilliamsVP Sales at Data Tech Company in NYC/remote
86
04/03/20 at 9:59PM UTC
Thank you for your generous help! Is this a time to increase an emergency fund if we have the opportunity?
(My company comforted me in saying that my job is not at risk for these next few months and I've recently downsized by expenses in half, so I can have flexibility to save or invest.)
SheIsSoMoneyMaking more money for women and #girlbosses
46
04/04/20 at 5:57PM UTC
I think it depends on how well your emergency fund is already funded. Having 3-6 months of expenses set aside is a good practice, knowing that the money isn’t just there for unemployment...HVAC repair, new tires, unexpected medical bill, etc. That way you’re not stuck paying interest on a credit card, you just have to replenish what you took out over time.
In the investing world, I talk about the four USES of cash: unexpected expenses, short term goals, everyday living, and a source of investment capital. If you have enough money on hand to address the first three, it’s time to put the rest to work. If not, you may want to consider balancing the saving and investing goals.
I’d also check into whether you can decrease your tax liability by investing. IRAs, 529s, HSAs, DDCSAs, FSAs, etc. all can reduce your current tax bill (or your tax bill in retirement.)
Kelly DanielsTechnology channel sales & business development
17
04/03/20 at 8:36PM UTC
Hi, I need to rollover an existing 401k from a past employer so I'm wondering if I should do this now or wait until the market gets better.
SheIsSoMoneyMaking more money for women and #girlbosses
46
04/04/20 at 5:48PM UTC
With an old plan, you have 4 options: leave it, take it, move it, or roll it. If you already have an advisor, I’d discuss it with them.
If you don’t have an advisor, here’s what I walk through with my clients. What are the investment options at your old employer? Do they match up with your risk tolerance and are they high quality? Can we hold those investments in-kind or will they need to be sold before rolling over the 401k into an IRA? Is there any company stock to discuss?
But from a high level, I’d say don’t be afraid to move the money. Sure, you might lose some value but you’re also buying into new investments while the market is down. And being properly diversified is critical to surviving future downturns as well as being poised for the market recovery.
© 2022 Fairygodboss. All rights reserved.