Finances FYI Sponsored by JPMorgan Chase
Where do you see yourself five years from now? How about 10? Maybe you plan to purchase a home by then or hope to fund a loved one’s college education. You might be considering longer-term goals as well, like building wealth to establish a legacy or enjoying a dream retirement.
No matter your future plans, investing can help you achieve those goals. Here are six tips to help you get started and take your planning to the next level:
• Build an emergency fund. Saving and investing are both important strategies for reaching your financial goals, but they have different purposes. Saving cash can help keep you covered in the short term, while investing can help you potentially grow your money to reach your long-term goals. Consider saving an emergency fund to cover 3-6 months of expenses, or perhaps a bit longer, depending on your situation, for any unexpected emergencies. You don’t want to be in a situation where you’re forced to sell your investments to cover an emergency.
• Pay down high-interest debt. Not all debt is created equal. It’s possible to invest for the future while you’re paying down debt. A good practice is to pay down any high-interest debt before starting to invest, but you can consider investing if you’re paying down low-interest debt.
• Create a plan for your specific goals. Identifying your goals is an important first step. But you should also build a plan for how you’re going to work towards those goals. Retirement might be a long-term goal, while a major purchase like a home could be something you’d like to achieve in the next five years. Once you’ve defined your various goals and the timeframe needed to achieve them, you can decide how you want to invest and create your roadmap. J.P. Morgan Wealth Plan, a free digital money coach available in the Chase app and on Chase.com, can help you set goals and create a plan to work towards them.
• Choose how to invest. You can work with a financial advisor, invest on your own or do a combination of both. Everyone has their own preference. For some people, working with a professional can be beneficial. An advisor can help you create a financial strategy that is customized around your personal situation and needs, and they can work with you to adjust that strategy as your life and priorities change. Money can be emotional, especially during times of market volatility. An advisor can provide an unbiased perspective and help you navigate the markets, stay disciplined and focus on your long-term financial strategy.
• Remember to diversify. Everyone’s financial situation is different. Your investment strategy will depend on your personal goals, your investing timeline and your tolerance for risk. Investors should also remember the importance of diversification. You don’t want to have all of your eggs in one basket. Diversification can help even out your portfolio’s returns during periods of volatility.
• Stay invested. Once you have a plan in place, it’s important to stay focused on your long-term strategy and avoid impulse reactions. Markets go up and down, and while volatility can be painful, it’s a natural part of investing. Having a well-built, long-term strategy can help prepare you for market volatility. And remember, it’s about time in the market, not timing the market. The amount of time you are invested in the market is one of the most important factors in growing your wealth.
Start investing in your future Anyone can become an investor – you don’t need to be wealthy or have access to a large sum of money to get started. Simply deducting a small percentage from each paycheck into an investment account can help bring you closer to your goals.
Ready to get started? Visit chase.com/personal/investments or stop by your local Chase branch to speak with an advisor who can help you begin your investment journey.
J.P. Morgan Wealth Management is a business of JPMorgan Chase & Co., which offers investment products and services through J.P. Morgan Securities LLC (JPMS), a registered broker-dealer and investment adviser, member FINRA and SIPC.
Finances FYI is presented by JPMorgan Chase. JPMorgan Chase is making a $30 billion commitment over the next five years to address some of the largest drivers of the racial wealth divide.
