Financial Technology

Financial planners urge clients to play it safe

DALLAS (CBSDFW.COM) – If you have a 401k or invest some of your paycheck in stocks or crypto, you’re probably wiping away tears from the downturn all of those took in 2022. 

The stock markets closing bell on the last day of trading in 2022 signaled a welcome end to Wall Street’s worst year since 2008. 

North Texans hoping to build up their retirement accounts, like Shannon Hodges are only seeing them drained. 

“I kind of watched them get smaller as the market came down, also being in technology, seeing my own stock, the company where I work come down it was tough,” Hodges said.

The Arlington tech executive is hopeful this year will be different, but financial planners say don’t count on it. 

“A lot of people are gonna have to come to terms with the fact that they have to make some changes in their lifestyle,” said Certified Financial Planner Bill Dendy.

Dendy and Derrick Kinney have built careers helping people invest their money wisely. 

“If they’re about to retire, people are very nervous, worried, anxious about losing money they’ve work so hard for,” Kinney said.

They warn that investments in technology or crypto come with some of the highest risks in 2023. 

“Only put into crypto what you can afford to lose,” Kinney said. “Crypto has taught us a lot of lessons in math if you don’t understand something, be wary of investing in it.”

They both expect the stock market to be volatile as long as inflation is high. 

So, investing in companies that are considered recession proof, they believe, may be the best bet. 

“Things that we need to buy no matter what, things like medication, they tend to be recession proof, things like household items,” Dendy said.

Despite rising mortgage rates, investing in real estate could pay off later in the year if it brings down prices as expected. 

While more people are holding on to their money during this volatile time, experts say it’s important that those who choose to continue investing don’t expect short term results. 

“If you got time to save, this could be one of the best buying opportunities we’ve seen in quite a while,” Kinney said.

Unless you buy a ticket and win the lottery, there are no easy ways to make money in 2023, according to financial planners who are urging their clients for now to play it safe. 

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