Dallas (CBSDFW.COM) – If you have a 401k or invest part of your salary in stocks and cryptocurrencies, you’re probably wiping away tears from the recession we’ve had in 2022.
The stock market’s closing bell on the last day of trading in 2022 marked a welcome end to Wall Street’s worst year since 2008.
People in North Texas want their retirement accounts to build just like Shannon Hodges is watching them dry up.
“I have seen them shrink as the market has gone down,” Hodges said. said.
Arlington tech executives expect things to be different this year, but financial planners say they don’t count on it.
“Many people have to accept the fact that they have to make lifestyle changes,” said Bill Dendy, a certified financial planner.
Dendy and Derrick Kinney have built careers helping people invest their money wisely.
“If they were to retire, people would be very nervous and worried, worried that they would lose the money they had worked so hard to earn.
They warn that investing in technology and cryptocurrencies will carry the biggest risks in 2023.
“Only put into cryptocurrency what you can afford to lose,” said Kinney. “Crypto has taught us many lessons in mathematics. If you don’t understand something, be careful about investing in it.”
They expect the stock market to remain volatile as long as inflation remains high.
So they think investing in companies that are considered recession-proof may be your best bet.
“Things you have to buy no matter what, things like medicines, things that tend to be recession-proof, household goods,” Dendy said.
Investing in real estate could pay off later in the year if prices drop as expected despite rising mortgage rates.
More and more people are holding on to their money during this uncertain time, but experts say it’s important that those who choose to keep investing don’t expect short-term results.
“If you have time to save, it could be the best buying opportunity in years,” Kinney said.
There is no easy way to make money in 2023 unless you buy a ticket and win the lottery.