Out of the Shoebox, Into the Market

With continued economic uncertainty, stockpiling emergency funds and paying off debt has taken precedence over investing.

But, hoarding cash isn’t the solution to financial security.

“You’ve got to do something. Not doing so is dangerous,” says Mary Claire Allvine, CPA and Principal with Brownson, Rehmus & Foxworth, Inc.

Small investors pulled out more than $33 billion from the domestic stock market in 2010, despite the Great Recession.

Putting money into stocks, bonds, short and long term investments will result in “less volatile returns over the long term and can help minimize downside risk,” says Fidelity.

Experts recommend creating a portfolio of at least a dozen different stocks. Diversifying includes purchasing stocks in different markets like technology, energy or consumer products.

Think wealth-building is something better left to experts?

Peter Lynch, financial guru and author of the critically acclaimed Learn to Earn begs to differ.

Lynch says, “Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it.”

Keep in mind that everyone’s investments will vary, there is no set level as to what a person should invest. It all depends on your financial goals.

Investopedia has an e-crash course called Investing 101 for Beginners. Also, here’s a quick quiz to help you take charge of your financial future.

Bonus PINK Link: Now that you learned to diversify your finances, how’s your credit?

What’s your post recession finance plan?

By Cynthia Good

“In all realms of life it takes courage to stretch your limits, express your power and fulfill your potential … it’s no different in the financial realm.” Suze Orman