I wanted to write about an investment article but with COVID-19 here today, I felt that I should write an article about investing during a time of a pandemic and what I’ve done. Here is a list of what’s going on now
- COVID-19 has had a huge impact on the economy and forcing over 30 millions people to file for unemployment, numbers not seen since the great depression
- The federal government has issued multiple stimulus packages to help the population and businesses
- The federal reserve has cut interest rates to near zero and there was rumor of potentially going into negative interest rates
- Mortgage rates are super low. I just refinanced to a 10 year loan at 2.625% and after I locked in my rate it even went lower to 2.25% and 2.375%.
- The stock market fell to rates similar to the 2008 recession
- I’m getting 1.5% interest on my savings account
- My retirement accounts have dropped in value but is slowly bouncing back
With this going on, is this the time to pump money your own money into the market? My thoughts I have about the market is this. What goes up must come down and if the market crashes, based on history, it’ll bounce back. One of the keys to making money in the stock market is to buy low and sell high. If you are in it for the long run, investing in stocks that give higher yield dividends might be more suitable. I did put money into the market. It is a risk not knowing what will happen with COVID-19 and the future of a vaccine or a way to get the economy stimulated. My personal thought is that it is low enough that an investment now would yield a positive return.
Not only did I invest in individual stocks, I also started a 529 plan for my children’s education. I delayed choosing whether to open up a 529 plan. Many people have told me that their 529 plans had actually lost all their gains and the market crash had set them back. I felt it was at a low point so by putting money into a 529 plan, I am hoping it’ll grow.
Was my decision a good decision? I do want to report that with the recent investments during COVID-19, I am in positive territory. My individual stocks are up and my 529 plans are 10% positive. Compared to my getting 1.5% interest on my savings, this was a good decision. I am fortunate to have a job and have the ability to make these investments during this tough economic time. These are my personal experiences and opinions which may not be right for you. If you are interested in following my journey, email subscribe to get alerts of latest posts.