Things To Keep In Mind When Investing During A Pandemic

While the past year has been incredibly volatile, the stock market is thriving resolutely through all these factors. Because the market is based partially on investors’ feelings and reactions to external elements, it makes sense that there have been changes with the uncertainty of the pandemic.

However, variation is inherent in the market, and is not a reason not to get involved. Whether you’re a seasoned investor, or just starting out, this can be an auspicious time to invest.

In fact, this time period holds extraordinary potential for investors. By keeping a few key circumstances in mind, you can access the market’s capacity and significantly advance your future prosperity.

Calculate the risk you can handle

The first thing to consider is how much risk you can take on yourself. Do you have an emergency fund? If not, you need to gather this in advance of making any investments. You should have 3-12 months of backup savings before you invest in case of personal or professional difficulties.

Think long term

The pace at which you want a return on your investment will impact your decision on how and where to invest. Are you searching for short-term or long-term investment options? If you’re looking for a short/medium term return, it may be better to place your money in a savings account with a good interest rate (1-2%). If you’re interested in a long-term return (with more potential for growth), then you can examine an investment in the stock market.

Whether or not you are interested in short or long-term investments, it’s important to diversify your portfolio. Investing in funds, where an expert broker invests your money for you, can be a good option, as well as individual stocks in companies you want to stake a claim with and high-interest savings accounts or CDs.

Stay patient and informed

Since the overall trajectory of the stock market is up, it’s important to remain level-headed with your investments. When the market does slump, it’s often due to unnecessary and ill-advised panic selling, so stay firm and trust in the market to recover naturally.

Because stocks values are based on perceptions, tapping into financial news outlets and what experts are saying can help you stay up-to-date on all the movements of the market, and be aware of what factors may be influencing its direction.

Use this guidance to open up cautiously to the stock market and get the best return on your investment. For all types of investors, having expert guidance can alleviate the strain of investing.

If you’re interested in using a financial advisor to help you, contact our team today. We’re tax and investment experts who are well-informed as to the best stock and investment options for you. Contact Donohoo Accounting Services today for information about your tax and financial issues, or to schedule a free consultation. For more tips and our latest updates, check us out on Facebook, Twitter or LinkedIn!

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Little Things Add Up: Responsible Money Moves During Your Vacation

This summer, it seems a little more feasible to step out of our homes and travel to a new destination. Whether you’re taking a flight across the country or hopping in the car for a four-hour road trip, you should want to have a general idea for how much money you can expect to spend from departure to arrival and back. Below are some tips on how to make sure you don’t overspend on a vacation, while also enjoying your trip.

Know Before You Go

Before you leave for your trip, obviously take a peek at your bank accounts and decipher how much money needs to be allotted from savings to checking. If you have a local bank, find out what the different rates are for ATM withdrawals. If you bank with a larger national bank like Chase, research for ATMs nearby where you’re staying.

Money Talks

In a world where people use credit cards and money exchange services like Venmo, sometimes old reliable cash still holds its weight. By having hard cash in the form of traveler’s checks, you have a visible fixed amount and once it’s spent, there’s no more money to spend on that given day. Sort the cash out per day and allot it per person as well if it is a family vacation.

If traveler’s checks don’t sound like your cup of tea, a responsible move to make sure you stick to the budget is to write down what you spend when you’ve spent it.

Research Your Destination

If you hadn’t done it prior to booking the vacation, be sure to research some of the popular tourist attractions and what the costs of them are. When researching the area or areas, make note of the difference in prices between the weekday and weekend rates, as they might be different for some attractions.

Also, with differences in weekday and weekend prices, certain times of the day might be cheaper than others. For example, a mini-golf course at 2 p.m. on a Tuesday might be significantly cheaper than 8 p.m. on a Saturday.

Track And Weigh

With online banking, it’s incredibly easy and user-friendly to log into your account and see how much you’ve spent and where you’ve spent it at.

Another thing to consider is weighing your opportunity cost while on vacation. There are always those small little unforeseen costs such as parking that can pop up at a moment’s notice. Planning ahead and weighing these costs can be an easy way to stay in line with your budget.

Organize And Attack

Making budgets and sticking to them can be a combination of overwhelming, anxious and nerve wracking. That’s why here at Donohoo Accounting Services, we have trusted associates that can help you with any and all financial needs.

From making a small budget to extensive accounting work, we have been helping clients resolve their tax and financial issues for more than 20 years. If you’re ready to get a handle on your finances but need some help, visit our website and schedule a free consultation today! For more tips and our latest updates, check us out on Facebook, Twitter or LinkedIn!

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