How to Invest in 2021, And Beyond (The Balance)

February 2, 2023

As another recommendation for 2021, Travis Gatzemeier, a certified financial planner (CFP) and founder of Kinetix Financial Planning, said that younger investors should “keep investing in a down market, investing when prices are lower, as this can pay off for them five to 10 years down the road.”

While investors may be able to buy shares of stock at more affordable prices when they’re down, putting money into the stock market isn’t smart if you don’t have cash on hand to pay bills and unexpected expenses. Before putting money into investments, it's crucial to have a sufficient emergency fund. This is even more important during times of uncertainty—like when unemployment is high or there’s a global health crisis—to help cushion the blow of potential financial setbacks you might encounter.

“Investors should also focus on building an emergency fund to cover their living expenses, should they lose their job due to economic factors impacting their company,” Gatzmeier said.

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