Yahoo Finance Dave Ramsey: 5 Money Moves You Should Make in an Election Year
Investing your money is one of the best ways to grow your wealth over the long term. There are many different ways you can choose to invest, but some investments might yield you higher returns this year. Why? It’s partly because of the elections.
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Financial guru Dave Ramsey says that 2024 could be a record year for the stock market with the 2024 presidential election right around the corner.
Ramsey explained in a recent video from The Ramsey Show that we’re close to hitting a new all-time record in the history of the stock market, which is a great indicator that 2024 is going to be a great year to be invested.
Some people might try and wait until closer to the election to start making investment moves, but Ramsey said that’s a mistake. “If you’re waiting until after the presidential election in November to do your investing, that’s probably a dumb idea if you got some money you’re sitting on right now,” he said.
Here are some money moves to make this year ahead of the elections.
1. Invest in the S&P 500
Historically, the S&P 500 is a solid and safe investment choice that yields significant returns over time. In fact, Visual Capitalist reported that the S&P 500 rallied over 24% in 2023 alone. Analyst forecasts predict another 5% to 10% in returns for 2024.
Investing in the S&P 500
2. Don’t Try to Time the Market
Timing the market means waiting to buy stocks when they’re lower so you can buy more shares. However, this strategy usually doesn’t yield the best results. It’s best practice to invest using a dollar-cost averaging strategy where you continuously buy shares of a company over time, regardless of the price per share. Dollar-cost averaging usually results in better returns over the long term versus timing the market.
3. Buy Real Estate
The price of real estate has spiked since the onset of the COVID-19 pandemic. Dwindling supply along with supply chain issues and increased demand have all contributed to rising costs. Real estate is only expected to get more expensive so Ramsey advises buying real estate now if you’re able to.
4. Save 6 to 9 Months’ Worth of Emergency Expenses
It’s crucial to save at least 6-9 months of cash in an emergency savings account, more if you can. This will shield you from the financial fallout of an unexpected life event such as a job loss or a major home repair bill.
5. Invest At Least 15% Of Your Income Towards Retirement
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Investing a minimum of 15% of your income in your 401(k) or Roth IRA is key to securing your financial future in retirement. The earlier you start, the more time your money will have to grow thanks to compounding.
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This article originally appeared on GOBankingRates.com: Dave Ramsey: 5 Money Moves You Should Make in an Election Year
