4 Money Tips For The Second Half Of 2022

Julia Carlson |

With half the year behind us, now is a great time to consider some investment actions we could take. It can be challenging to know where to start, especially with high inflation and economic uncertainty causing high volatility in the markets. Here are four money tips for the second half of 2022.

  1. Consider Investing Excess Cash:If you have excess cash earmarked for a long-term goal (retirement or college, for example), a downturn may present an opportunity. Over the last three years, the S&P500’s compounded annual growth rate was 9%. Even with all the pandemic-related volatility, that’s still shy of its historical average.1 With the downturn, the potential gain is even higher.
  2. Be Patient: Even the most seasoned investors must resist the urge to react to short-term market events. Instead, try to take a long-term view of the markets. Remaining patient and taking a break from watching the markets closely may help to prevent making unprofitable decisions.
  3. Use Your Losses:Each year, taxpayers can deduct up to $3,000 in realized losses. If your losses exceed $3,000, you may be able to carry them forward into future years. Make sure to speak with your tax professional before making any decisions.
  4. Embrace Volatility: Economic uncertainty has caused many to worry. But a long-term portfolio strategy often takes into account periods of market volatility. Stay confident in your plan and look for opportunities as the market recovers.

 

As you consider these tips, work with your financial advisor to generate any immediate actions and reevaluate your long-term plan.

 

  1. Yahoo Finance showed the S&P 500 at 3020.97 on June 24, 2019, and 3,911.74 on June 24, 2022. Past performance does not guarantee future results, individuals can’t invest directly in an index, and the return and principal value of stock prices will fluctuate.

 

Information in this material is for general information only and not intended as investment, tax or legal advice. Please consult the appropriate professionals for specific information regarding your individual situation prior to making any financial decision. 

Securities offered through LPL Financial, Member FINRA/SIPC

Email me your questions at financial.freedom@lpl.com or call 541-574-6464.  You can also post you question on our Facebook page: https://www.facebook.com/FinancialFreedomWealthManagementGroup 

 

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