Suze Orman’s 5 time-tested tips to help you overcome inflation and stock market falls

Suze Orman’s 5 time-tested tips to help you overcome inflation and stock market falls

“Keep a great stock forever”: Suze Orman’s 5 time-tested tips to overcome inflation and stock market falls

In times of difficulty, Suze Orman will be the first to tell you that what you do not do with your money can be even more important than what you do with it.

The best-selling personal finance writer and television personality has seen it all in her career over the decades and has many tips to help you overcome the volatile financial waters ahead.

Here are five key pointers in moving your investment back and forth, so that you can protect your portfolio and increase it even in times of recession.

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1. Do not sell stocks when markets are bad

When stocks fall lower, investors tend to quickly reduce their investments. That’s a bad idea, says Orman.

Instead of dumping stocks, he advises you to keep investing the same amount of money every month, no matter what the market does. Using this strategy, a bad month for the market becomes a good month for investment.

“I wish again in 2008,” she told Yahoo Finance, referring to a major market collapse. “Then the property was made. Then you could buy shares for pennies on the dollar.”

If you train yourself to keep the market steady, you will continue to build a solid portfolio with long-term profit potential.

2. Do not blindly trust a financial advisor

It is important to have a financial advisor you can trust.

“Do not think that they will always put your own interests first, because they probably have their own interests,” says Orman.

When choosing a financial professional, make sure that he or she is a “trustee”, which means that your advisor has a legal obligation to act in your best interest.

During the audit process, ask prospective counselors how they will be reimbursed for working with you and other services they may offer. This will give you a good idea of ​​their motivation when investing your money.

3. Do not invest for the wrong reasons

Orman says a lot of people – especially young people – make investment choices purely because a stock looks cool or trendy.

“They decide, ‘This company is great, I’ll invest in it,'” he told CNBC in 2018. “If that’s your strategy, ‘maybe you’re doing it right, you’re going to do it wrong.’

It is less risky to diversify your investment by investing your money in index funds and stock exchanges or ETFs.

4. Do not rush to buy a house

Homeownership is a big part of the American dream, but today’s mortgage rates may make some people think twice.

“Sometimes it makes sense to have a home,” Orman told CNBC. “And sometimes, depending on where you live, it makes sense to just rent.”

If you are in an expensive city, Orman says why not invest in the stock market instead of investing a lot of money in real estate?

This way, you can increase your savings – perhaps on a down payment for your dream home.

5. Just do not sell shares – period

Orman speaks from personal experience. In 1997, he invested about $ 5,000 in Amazon. She sold the share a few years later and quadrupled her money.

However, the shares would be worth millions today. “It makes me feel sick to even record it,” he told CNBC.

Investing in individual stocks is not her favorite game plan, but she says people playing in the marketplace should at least do extensive research on companies that interest them. He says Google, Facebook and others are expected to maintain their competitive edge for years to come.

“If you buy, however, be sure to keep,” advises Orman. “Keep a wonderful stock forever.”

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This article provides information only and should not be construed as advice. It is provided without any guarantee.

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