This question was posted by almondeyes83 in our SavvySugar Q and A community group. She wants to know how to take advantage of the rocky market. I reached out to Robert Brokamp, a retirement expert from The Motley Fool, the go-to website for investing, to share his expertise with us.
I'm a young investor and would like to take advantage of this market . . . but have no idea where to start! I am currently a full-time graduate student with a very small amount to invest. Since I am younger, I know that any money I invest is on a long-term track and can ride the fluctuations of this market. When I was working, I did contribute to a 401(k) plan — but I haven't rolled anything over because I am unsure of the best course to take. Any advice?
Here is what Robert had to say:
First off, only invest money you don’t need for at least five years. Also, you can transfer the money in your old 401(k) to an IRA, which will likely lead to lower costs and more investment options. As for where to invest the money, consider a total market US stock market index fund or exchange traded fund (ETF). You’ll essentially be a part-owner of thousands of American companies — from Coca-Cola and General Electric to Apple and Google. It will be a wild ride, but — if history is any guide — these companies will be worth more than they are today by the time you retire.