Investing in Stock Market

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Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions.

This week’s episode is all about investing in 2023.

You can find this episode on any one of these platforms.

Our take

Investors may have had a wild ride depending on how much money they let in 2022. the swings of the stock market Give them a chance. And that’s one takeaway from last year: Don’t let the day-to-day ups and downs worry you too much. Acting from a place of fear can lead to decisions you’ll regret later. Timing the market is not an investment strategy.

Many financial advisors will say that as long as you are making regular contributions to your accounts through the highs and lows — a strategy called “dollar-cost averaging” — you are on track to build wealth over the long run. If the stock market’s erratic streak continues in 2023, don’t look at your retirement accounts too often to avoid being anxious.

If you’re new to investing If you want to get started in the new year, it is important that you know your goals and which accounts will help. A retirement account is a must for many newcomers. Many workers have the option of a 401(k) or other workplace accounts. These accounts are also available to employees. individual retirement accountsBoth Roth and traditional.

Our tips

• There’s nothing wrong with being boring: Simple, well-diversified portfolios have more reliable returns than investment strategies that attempt to time the market.

• Look at the long-term. Markets fluctuate, so be mindful of your time horizon and avoid getting caught up in swings. Time horizon just means how long before you’ll need to use the money invested.

• Take one step at the time If you’re new to investing, explore your options — including retirement accounts, brokerage accounts or robo-advisor accounts — to know which can help you meet your investing goals.

Have a money question? Text us or call 901-730-6373. You can also email us at [email protected]. Listen to past episodes on the podcast homepage.

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Liz Weston, CFP® writes for NerdWallet. Email: [email protected]. Twitter: @lizweston.

Sean Pyles writes about NerdWallet. Email: [email protected]. Twitter: @SeanPyles.

The article Smart Money: Your Money in 2023: Investing in the Stock Market Original version: NerdWallet.