Important Lessons From Personal Finance Experts

If there’s anything we learned in 2021 when it comes to investing in stocks, bonds, and real estate, it’s that yet again, the markets can prove to be unpredictable, defy logic and offer surprises around every corner. Sometimes we can correctly anticipate what’s coming based on our past investing experience. 

In this article, we’re sharing insights from personal finance experts in the Wealthtender community and the lessons they learned in 2021 to help all of us make smarter investing decisions in 2022 and beyond. 

Have a (Financial) Plan

Financial planning, having a plan, is so much more than investments and should address areas such as retirement planning, estate planning, education planning, risk management, asset allocation review, and cash flow planning. 

Remember the Benefits of Dollar-Cost Averaging

Get in the game and stay in it. Focus on buying quality companies that you love and want to keep for at least 10 years. 

Adapt Your Portfolio for Inflation

The investing lesson of 2021 is that you can’t fight the rising prices at the grocery store or gas pump but you can and should adapt your investment portfolio by trimming some tech stocks, adding to financials, and finding inflation-protected securities 

Buy and Hold

Overvalued markets can even get more overvalued. However, if investors had taken money off the table at end of 2020 they would have missed around 30% or more gains in the S&P 500 Index and NASDAQ.