When it comes to investing, many novice investors feel a lot of pressure to find the best time to invest, especially given the upcoming election and the uncertainty surrounding the White House. Financial guru Dave Ramsey of The Dave Ramsey Show tells his listeners that no matter what happens in the White House, he’s not waiting to invest.
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In an episode of “All Things Money Show,” financial expert Dave Ramsey spoke about investing and why you shouldn’t wait to reap the benefits of compound interest. Ramsey asked listeners, “What’s Dave Ramsey doing right now?” and added, “Buy, that’s it. Invest, that’s it.” One of the things Ramsey encourages people to do is to pay off their debts as soon as possible and start investing their money. However, with the current uncertainty in the White House, investors are taking more risks as they try to predict how the current political drama will affect the market.
Since the presidential debate between Donald Trump and Joe Biden, President Biden has faced calls from several House Democrats to withdraw from the campaign after an uneasy performance that included stumbling over words. ABC News reported that Biden has vowed to continue the campaign despite the calls from anxious Democratic lawmakers, unsettling many investors. Kim Wallace, senior managing director at data firm 22V Research, told ABC News that “the range of possible outcomes is as wide as anyone can imagine,” adding that “frankly, the market doesn’t like any uncertainty.”
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However, the uncertainty of whether Biden will be able to serve another four years as president is not stopping Ramsey from investing. “I’m not going to wait for the old guys, Trump and Biden, to clash before I decide what to do,” he said. “One of them might give up,” he added. Ramsey advises people not to watch news programs such as Fox News and CNN, as they will sit on the sidelines and miss out on investment opportunities.
So how do people do this?
Speaking on the social media platform X, formerly known as Twitter, Ramsey explained that once you’ve paid off your debt, you need to start investing. “When time and compound interest are on your side, big things can happen. No matter what age you start, you’ll be glad you did when you retire,” he wrote. Ramsey also gave some tips to help you get started, making it easier to get started.
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Before you start investing, Ramsay recommends saving up at least $1,000 in an emergency fund, with the goal being to have three to six months’ worth of expenses saved up. While it may be tempting to start investing without an emergency fund, Ramsay advises against it: “You could end up dipping into your retirement investments when an emergency occurs, completely ruining your financial future in the process.” The amount you invest each month will vary depending on your income and expenses, but Ramsay’s rule of thumb is to invest at least 15% of your income.
Choosing a tax-advantaged retirement account will help you get the most out of your investment, and you should invest in a quality growth stock mutual fund, as diversifying across hundreds of companies will lower your investment risk — what Ramsay calls “not putting all your eggs in one basket.”
Many people get discouraged when they first start investing because they often don’t see big gains right away, but Ramsay says that with continued effort and consistency over the long term, you’ll see your money grow.
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The article “Dave Ramsey Slams Importance of Investing Now: ‘I’m Not Waiting for the Old Man Trump-Biden Clash'” originally appeared on Benzinga.com.
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