31: What the #$%* should I do with my money NOW?
Cash. Do something with your cash right now to take advantage of inflation and rising interest rates.
Open/Deposit into a high-yield savings account. Consider:
Consider an I bond interest rates are 6.89%. $10,000 max per year. You can cash in (redeem) your I bond after 12 months. However, if you cash in the bond in less than 5 years, you lose the last 3 months of interest. For example, if you cash in the bond after 18 months, you get the first 15 months of interest.
Look for CASH In your IRAs. Invest that cash now, especially while the market is down. For the long term- there should be NO money in retirement accounts.
Keep Investing when the market is low and falling. For example, if you invested at one of the low points into the S&P 500 at the end of summer 2022, you would have made 10% on your investment over the last few months. Consider dollar cost averaging.
What to invest in a recession.
High dividend ETFs such as Vanguard High Dividend Yield ETF
Consumer Staples mutual fund such as Fidelity Select Consumer Staples Portfolio (FDFAX)
Save money on your taxes. Prepay future medical expenses to maximize your medical expenses deduction. Harvest Losses. If you have a taxable portfolio, you can claim a net of $3,000 in losses.
Invest more in your IRA as a result of inflation. In 2023 the max contribution is now. $6,500 if under 50 and $7,500 if over.