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10 Investing Moves to Make in 2022

By Liz Brumer-Smith - Jan 10, 2022 at 11:43AM
Start line of 2022 in valley roadway.

10 Investing Moves to Make in 2022

Hit the ground running in 2022

A new year can be a wonderful time to take new steps to further your goals, like investing. Whether you're brand new to it or looking for ways to take your existing portfolio up a notch, these 10 moves will help you make the most of your investments in 2022.

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1. Establish an investment goal

Setting goals is the first step in creating a realistic and actionable investment plan. Think about what you are trying to achieve by investing -- for example, what is the specific number you need or want to reach for retirement and how long do you have before you will be pulling from your retirement accounts?

What other accounts do you already have that could be used to further invest? Be specific with these goals as it will help you follow through with the next nine steps.

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2. Create an investment budget

While you don't need a ton of money to start investing, the more money you have to invest, the greater the chance of making your money grow over time. Start by reviewing your current financial situation, including your debt and having a solid amount set aside for emergencies, then determine how much money you can put aside for investing.

Ideally, you'd be able to set aside 10% or more of your income each month for it, but if you're not quite there yet, make it a long-term goal and start saving whatever you can for investing now.

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Adult and child are working on savings jar in a kitchen.

3. Make saving for investing automatic

Making your investment contributions automatic is one of the easiest ways to ensure you're actually saving the desired amount each month. Thankfully with online banking, setting up automatic transfers between accounts on a weekly, biweekly, or monthly basis has never been easier.

ALSO READ: How to Automate Your Investments

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Person investing on computer and smiling.

4. Take investing into your own hands

It may be easy to hire an investment advisor or fund manager to manage your investments for you, but you'll end up paying a lot of fees while often receiving underwhelming results. Professional money managers, even those at some of the most prestigious firms, are notorious for underperforming the market.

You have the greatest potential to be your best advisor. If you currently have your investments with a firm, review their performance as it compares to the S&P 500 or comparable index during that same period. If it underperformed, that's a good sign to take investing into your own hands. Just make sure you've taken the necessary steps to educate yourself on how to invest and where to invest.

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5. Set up your investment accounts

If you don't have an account already created, the first step is to create your investment and retirement accounts, which can include a brokerage account, 401K plan, SEP IRA/Solo 401(k), traditional IRA, or Roth IRA.

An online brokerage is the easiest way to make your own stock, index, or investment picks in the stock market. There are several online brokerages that offer very little to no fees for trades and no minimum account requirements, making it a great way to start investing.

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Presented by Motley Fool Stock Advisor
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Person putting money into a jar.

6. Max out your accounts

If you have additional income each month, focus on maxing out your annual contributions to each account. Find out what your 401(k) maximum contributions are with your employer and put the maximum amount possible into any and all retirement accounts such as a Roth IRA. Your age will determine how much you can contribute each year, so find out the unique contribution limits for your circumstances and start investing.

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7. Invest in growth stocks

Growth stocks can be an incredible way to build wealth over time. By investing in a few companies that are poised to achieve exceptional growth over the next five, 10, or 15 years, you can turn a relatively small initial investment into a sizable amount.

ALSO READ: 3 Growth Stocks That Could Be Huge Winners in the Next Decade and Beyond

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A real estate agent showing two people around an empty house.

8. Invest in real estate

Real estate can be a great way to diversify your portfolio, earn additional income, and take advantage of additional tax benefits. But owning and managing a real estate investment like a rental property isn't for everyone. If you're looking for more passive investments in real estate, consider investing in real estate investment trusts (REITs).

REITs are companies that invest in income-producing, institutional-quality real estate and real estate equities. There are more than 200 available as stock market investments.

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Dividends spelled out in wooden blocks.

9. Create dividend income

REITs and many other stocks pay dividends to shareholders, which are monthly or quarterly payments. Many investors focus on dividend-paying stocks specifically to be able to build up cash flow that can eventually be used to live off of. Having a combination of growth stocks, REITs, and dividend stocks can be a great way to diversify your income in your portfolio and maximize its return potential.

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Person looking at chart on laptop at home.

10. Monitor your investments

As you invest, you shouldn't "set it and forget it." Focus on buying and holding for the long term, monitoring your investments periodically throughout the year. Doing this allows you to ensure your investment portfolio is performing as hoped and to strategically sell the assets that no longer fit your investment goals.

Staying up to date on news relating to each company you've invested in and reviewing quarterly earnings can be a great way to stay informed.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

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The key is to get started

Investing can pay off big over the long term. While there are countless tools, knowledge, and resources available to help you on your investment journey, it's your portfolio at the end of the day. Determine the best avenue for investing for you today and start small. As you gain more experience, and hopefully more income, you can contribute more and invest further.

The Motley Fool has a disclosure policy.

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