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Yahoo
3 days ago
- Business
- Yahoo
How To Protect Your Money From a Stock Market Crash at Every Age
According to a recent Allianz Life survey, 51% of Americans admitted to being worried about another stock market crash and 67% were worried that their short-term investments didn't have adequate returns to fight against inflation. Read Next: Discover Next: Since a stock market crash is a natural occurrence in market cycles, you'll want to focus on doing your best to successfully navigate one. We will explore how every age group can navigate a stock market crash without losing money in the long term and how people should react differently based on their life stage. How can you protect your money from a stock market crash at every age? If you're young enough (age 13 to 28), you don't have to worry as much about losing your money in the stock market since you have time. 'A crash isn't a reason to abandon investing altogether,' said Michael Rodriguez, certified financial planner (CFP) and owner of Equanimity Wealth. 'If you're investing for the long haul (and at your age, you should be), downturns are part of the journey.' Check Out: Staying consistent and avoiding the temptation to try to time the market will help protect your money. Since you have time on your side, you just have to focus on staying consistent and diversified. Rodriguez noted that since so much of Gen Z's investing information comes from TikTok and Reddit, you'll want to be careful about accepting investing advice. If something sounds too good to be true, it usually is. While cryptocurrency and certain stocks can feel exciting because of the potential returns, you'll want to ensure that your entire portfolio isn't in volatile assets because a market downturn could wipe out your portfolio. 'You don't need to abandon what you enjoy investing in, but add some balance: bonds, real estate (even REITs) or just plain old boring cash can help cushion the blow when markets fall,' Rodriguez explained. This generation (age 29 to 44) is still young enough not to feel the impact of a stock market crash as much since they're many decades away from retirement. 'Millennials have the ability to bear risk, they just need to develop the willingness to bear a risk and understand that they have time on their side,' said Robert R. Johnson, Ph.D., chartered financial analyst (CFA), chartered alternative investment analyst (CAIA) and professor of finance at Creighton University. 'In my opinion, millennials should not try and protect themselves from stock market corrections or crashes.' Since you're still young enough, you don't have to worry as much about market crashes because you could risk wealth creation by missing out on compound interest by avoiding investing. David Materazzi, investing expert and CEO of Galileo FX, noted that time is on your side and a stock market crash can help you. He urged millennials to keep buying through market swings by automating investing. Staying invested and buying more when prices drop can help you win in the long run. Jordan Mangaliman, advisor and owner at Goldline Financial Services, believes that when there's a stock market crash, you should invest more and buy more since the prices are much lower. This is the age group (age 45 to 60) where a stock market crash can get tricky and you'll want to start making changes to your investments to prepare accordingly. Mangaliman noted that you should consider rebalancing your portfolio to manage volatility as you approach retirement. Depending on when you plan to retire and begin distributions from your retirement accounts, you may not have the time it takes for the market to recover. Johnson believes someone in this generation should focus on establishing lower-risk equity portfolios. 'Portfolios of consistent dividend-paying stocks have been shown to do better in market downturns than growth counterparts. I would encourage investors to assemble a portfolio of high-dividend-paying stocks to reduce their risk,' he added. Materazzi shared that you shouldn't get greedy since you're close to the finish line. Instead, you'll want to balance growth with safety and Diversify. Keep some cash and short-term bonds. You don't want to be chasing hot stocks or panicking at this age. This is the age group (age 60 and older) where you're either retired or about to retire, so you can't take as many chances with your portfolio. Mangaliman admited that a stock market crash can be chaotic for your retirement experience if you're in this age group and relying on your investments for your income. 'For retirees in this age group that need a steady stream of income from their investments, it's crucial to rebalance their portfolio to reflect their financial goals,' he explained. You're not trying to grow fast because the goal is to ensure you don't run out of money. 'When a person is within a few years of retirement, say five years, they should begin to reduce their risk exposure in retirement accounts,' Johnson said. 'A large downturn in the equity markets immediately preceding retirement can have devastating effects on an individual's standard of living in retirement.' As a retiree, you should maintain a healthy allocation to ensure you have the income to cover your expenses in your golden years. Materazzi suggests keeping three to five years of living expenses in cash or short-term bonds. If you have enough money invested to cover your expenses, then you've already won and you shouldn't gamble. 'With all of the above groups, I would strongly urge them to develop an investment policy statement and establish an investment strategy that takes into account their unique circumstances and risk tolerance. The worst mistake people can make is to react and change their investment strategy as a result of market circumstances,' Johnson added. More From GOBankingRates How Much Money Is Needed To Be Considered Middle Class in Every State? This article originally appeared on How To Protect Your Money From a Stock Market Crash at Every Age
Yahoo
24-05-2025
- Business
- Yahoo
5 Steps To Quit a Side Gig You Hate When You Still Need the Money
According to recent research from PYMNTS Intelligence, 41% of consumers have a side hustle these days, and 22% of those with a secondary income source cited having one to cover basic living expenses. In surprising news, the extra income accounted for 43% of the total income of someone with a side hustle. Read More: Find Out: Regarding those earning under $50,000, the side hustle accounted for 76% of total income. This research indicates that Americans rely on side gigs to get by. However, there could come a time when you no longer have the energy to balance multiple jobs. If you need your side hustle income to help out with expenses but are tired of working so much and want to quit the gig for a better work/life balance or improved mental health, there are ways to do this. Here are five steps to quit a side gig you hate when you still need the money. 'The first step is being honest with yourself about what you can realistically handle,' said Michael Rodriguez, a CFP and the owner of Equanimity Wealth. 'If you're relying on the money, you can try tapering down the gig slowly instead of quitting all at once.' You want to give yourself an adjustment period to not shock your finances. This means that you'll want to set a deadline in advance so that you don't abruptly drop a supplemental income stream that's helping you get by. This leads us to the next step. James Francis, a financial expert and CEO of Paradigm Asset Management, suggests conducting a freedom audit to determine what it would take to quit the side gig. Here are a few questions to look at: Why are your expenses so high? How much of your monthly expenses depend on the side gig? How much money do you need to cover the basic living expenses? You'll want to run the numbers to see how much of your side gig income needs to be replaced to cover your bills without stressing about getting by. Once you have the numbers clearly outlined in front of you, this could help alleviate some anxiety about dropping the income stream. 'Take a look at your spending and start trimming expenses so that your full-time income can support your lifestyle,' noted Rodriquez. You'll want to review your expenses to determine if there's any room to find some savings so you don't have to maintain two jobs to get by. At this point, you'll want to go through your monthly subscriptions to see if there's anything that can be cut or negotiated to help you save money. You may find that you're relying on $500 monthly from the side gig to get by, which you could cut from your monthly fixed costs. Sometimes, the extra funds from a side gig could lead to lifestyle inflation. Reviewing your personal spending and conducting a freedom audit will help you figure out how much money you have to make up for outside of your full-time income. You'll want to take an honest look at the real price of the extra income. You could be compromising your health and relationships by allocating this time towards your secondary gig. The harsh reality is that you could use the hours dedicated to a side gig to build wealth in other ways. Francis mentioned that many burned-out side hustlers often fail to realize that their free time is valuable. The two hours that you're putting into the side gig could be better utilized by reinvesting into a more productive activity, like learning a high-value skill or even trying to become better at your main job to get a raise. Better uses of your time are available, and you don't have to feel stuck in that second gig. The goal is to make your money work for you so that you don't always have to clock in. Francis suggests redirecting a fraction of that side income towards investments that generate passive income so that you can quit in the near future. You can invest in assets that pay dividends, conservative index funds, or fractional real estate. The goal is to build financial momentum that doesn't depend on working another shift. It may take some time to see results from your investments, but the good news is that these sacrifices can help you quit that side gig. Rodriguez concluded, 'Chasing every extra dollar isn't often worth it, especially if you're constantly exhausted or missing out on your life. Like anything you do in life, aim to find a balance that actually works for you.' More From GOBankingRates Mark Cuban Tells Americans To Stock Up on Consumables as Trump's Tariffs Hit -- Here's What To Buy 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth Sources: PYMTS, 'America's Second Shift: Why Side Hustles Are Now a Financial Lifeline' Michael Rodriguez, Equanimity Wealth James Francis, Paradigm Asset Management This article originally appeared on 5 Steps To Quit a Side Gig You Hate When You Still Need the Money Sign in to access your portfolio
Yahoo
24-05-2025
- Business
- Yahoo
5 Steps To Quit a Side Gig You Hate When You Still Need the Money
According to recent research from PYMNTS Intelligence, 41% of consumers have a side hustle these days, and 22% of those with a secondary income source cited having one to cover basic living expenses. In surprising news, the extra income accounted for 43% of the total income of someone with a side hustle. Read More: Find Out: Regarding those earning under $50,000, the side hustle accounted for 76% of total income. This research indicates that Americans rely on side gigs to get by. However, there could come a time when you no longer have the energy to balance multiple jobs. If you need your side hustle income to help out with expenses but are tired of working so much and want to quit the gig for a better work/life balance or improved mental health, there are ways to do this. Here are five steps to quit a side gig you hate when you still need the money. 'The first step is being honest with yourself about what you can realistically handle,' said Michael Rodriguez, a CFP and the owner of Equanimity Wealth. 'If you're relying on the money, you can try tapering down the gig slowly instead of quitting all at once.' You want to give yourself an adjustment period to not shock your finances. This means that you'll want to set a deadline in advance so that you don't abruptly drop a supplemental income stream that's helping you get by. This leads us to the next step. James Francis, a financial expert and CEO of Paradigm Asset Management, suggests conducting a freedom audit to determine what it would take to quit the side gig. Here are a few questions to look at: Why are your expenses so high? How much of your monthly expenses depend on the side gig? How much money do you need to cover the basic living expenses? You'll want to run the numbers to see how much of your side gig income needs to be replaced to cover your bills without stressing about getting by. Once you have the numbers clearly outlined in front of you, this could help alleviate some anxiety about dropping the income stream. 'Take a look at your spending and start trimming expenses so that your full-time income can support your lifestyle,' noted Rodriquez. You'll want to review your expenses to determine if there's any room to find some savings so you don't have to maintain two jobs to get by. At this point, you'll want to go through your monthly subscriptions to see if there's anything that can be cut or negotiated to help you save money. You may find that you're relying on $500 monthly from the side gig to get by, which you could cut from your monthly fixed costs. Sometimes, the extra funds from a side gig could lead to lifestyle inflation. Reviewing your personal spending and conducting a freedom audit will help you figure out how much money you have to make up for outside of your full-time income. You'll want to take an honest look at the real price of the extra income. You could be compromising your health and relationships by allocating this time towards your secondary gig. The harsh reality is that you could use the hours dedicated to a side gig to build wealth in other ways. Francis mentioned that many burned-out side hustlers often fail to realize that their free time is valuable. The two hours that you're putting into the side gig could be better utilized by reinvesting into a more productive activity, like learning a high-value skill or even trying to become better at your main job to get a raise. Better uses of your time are available, and you don't have to feel stuck in that second gig. The goal is to make your money work for you so that you don't always have to clock in. Francis suggests redirecting a fraction of that side income towards investments that generate passive income so that you can quit in the near future. You can invest in assets that pay dividends, conservative index funds, or fractional real estate. The goal is to build financial momentum that doesn't depend on working another shift. It may take some time to see results from your investments, but the good news is that these sacrifices can help you quit that side gig. Rodriguez concluded, 'Chasing every extra dollar isn't often worth it, especially if you're constantly exhausted or missing out on your life. Like anything you do in life, aim to find a balance that actually works for you.' More From GOBankingRates Mark Cuban Tells Americans To Stock Up on Consumables as Trump's Tariffs Hit -- Here's What To Buy 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth Sources: PYMTS, 'America's Second Shift: Why Side Hustles Are Now a Financial Lifeline' Michael Rodriguez, Equanimity Wealth James Francis, Paradigm Asset Management This article originally appeared on 5 Steps To Quit a Side Gig You Hate When You Still Need the Money Sign in to access your portfolio
Yahoo
23-05-2025
- Business
- Yahoo
From Paycheck to Prosperity: 3 Vital Steps To Build Wealth No Matter Your Salary
Retirement planning articles are filled with myths about building wealth, saying, 'You have to be born into money to become a millionaire' and 'Only people with high salaries can build real wealth.' But in reality, your salary has little to do with growing wealth, and even people with modest incomes can build a comfortable retirement. Be Aware: Try This: CFP Michael Rodriguez at Equanimity Wealth said, 'Building wealth doesn't require a six-figure income; it requires a plan, consistency, and time.' Here are three vital steps to wealth on any salary. Hint: It's not diversification, called the holy grail of investing by Tony Robbins. The first step to wealth management is knowing what's coming in and what's going out. Write down your earnings and recurring expenses in a notebook or a budgeting app. Don't forget income from part-time work, side hustles and any rental income. Some examples of recurring bills include the following: Mortgage or rent Utilities Regular home maintenance Car payments Cable or streaming services Cell phone bills Credit card payments Property taxes Homeowners or renters insurance Transportation: gas, tolls and regular vehicle maintenance For You: Rodriguez said he uses a strategy called the 50/30/20 framework as a starting point for all his clients — whether they earn a salary of $40,000 or $400,000. It's a simple framework that is easy to apply. With this budgeting method, you put 50% of your income toward needs, 30% toward wants and 20% into savings. If your needs require more than 50% of your income, you can adjust the percentages to fit your expenses. The important thing is to use a solid framework to give yourself clarity as to what you're using your money for — and where you might need to cut back on spending. Paying down debt, especially high-interest balances, can be one of the fastest ways to grow wealth. The less you spend on interest, the more you can put toward savings and investments. Start by tackling credit cards and other high-rate debt, and aim to pay off your mortgage or car loan before retirement. If you're holding a mortgage with a high rate, refinancing when rates drop could free up even more cash to build long-term wealth. Long-term investments build wealth over time, even when starting small. Rodriguez recommends investing early, even if you can only invest $50 a month. He suggested investing in 'tax-advantaged accounts like a 401(k), Roth IRA and Health Savings Account (HSA), if available, and aiming for low-cost index funds that give you broad market exposure.' Once you become an investor, there are steps you can take to protect your nest egg, according to the U.S. Securities and Exchange Commission. It can be a good idea to work with a financial advisor or other investment professional to make sure you're investing your money in the best ways, but always research the professional you're considering working with before you give them any of your money. You can look up investment advisors on to ensure they are licensed and registered. Another thing you can do is look them up on LinkedIn and the Better Business Bureau to review their business and employment history. More From GOBankingRates How Far $750K Plus Social Security Goes in Retirement in Every US Region Sources Michael Rodriguez, Equanimity Wealth 'Build Wealth Over Time Through Saving and Investing.' This article originally appeared on From Paycheck to Prosperity: 3 Vital Steps To Build Wealth No Matter Your Salary
Yahoo
14-05-2025
- Business
- Yahoo
4 End-of-Life Money Mistakes That Will Cost Your Family
No one knows exactly when they'll leave this earth, but it's a given that it will happen. Before it does, it's important to have your financial affairs in order. Failing to make these arrangements in advance can leave your family with a mess to sort out, a possible financial burden and additional heartache on top of what they're already experiencing. Learn More: Try This: Here are four end-of-life money mistakes to avoid. Also explore several estate planning myths that may be stopping you from building generational wealth. Michael Rodriguez, certified financial planner (CFP) and owner of Equanimity Wealth, said one of the most common end-of-life money mistakes he sees involve clients who don't have a proper estate plan in place — especially those that lack a will or trust. Unfortunately, this mistake is all too common: About two-thirds of Americans do not have an estate plan, and procrastination seems to be a contributing factor. Caring's 2025 Wills and Estate Planning Study found that 43% of people who don't have a will admit they simply haven't gotten around to it. The consequences of not having all or part of an estate plan in place can include loved ones dealing with a costly and lengthy probate process while suffering unneeded stress, Rodriguez said. Explore More: A beneficiary is the person you designate to receive your worldly possessions, including assets. Rodriguez explained that life changes, such as marriages, divorces and children, occur, but many people fail to update their documents to reflect their most-current wishes, which means their assets won't go to the correct person. 'I've also seen clients unintentionally disinherit family members simply because they never reviewed their documents,' he said. Taking the time to update beneficiaries will eliminate confusion and allow your wishes to be carried out without delay. Although a will is important to have in place when you pass away, it's not the only thing you need to plan for. Rodriguez said it's also important to have a power of attorney or advanced healthcare directive in the event that you become incapacitated and can no longer make decisions. Failing to arrange for these types of legal documents can create financial and emotional dilemmas for your family. Even though you may not relish the idea of explaining to certain family members what will happen to your estate after you're gone, it's important to prepare them for the inevitable. Rodriguez explained that when families don't know what to expect financially or emotionally after their loved one passes away, it can result in a conflict. Therefore, communicating your wishes in advance to everyone who might be affected is a must. More From GOBankingRates What $1 Million in Retirement Savings Looks Like in Monthly Spending The New Retirement Problem Boomers Are Facing 5 Little-Known Ways to Make Summer Travel More Affordable Are You Rich or Middle Class? 8 Ways To Tell That Go Beyond Your Paycheck Sources Equanimity Wealth, 'Equanimity Wealth — Empowering Your Financial Journey.' LegalZoom, 'Estate Planning Statistics to Read Before Writing Your Will.' '2025 Wills and Estate Planning Study.' This article originally appeared on 4 End-of-Life Money Mistakes That Will Cost Your Family Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
