Viewpoints: 5 money moves to make this week

Learn what to know about tax stress, inflation, bitcoin, housing stocks—and find out how to start investing.

FIDELITY VIEWPOINTS®

WEEKLY EDITION: March 11, 2021

Calm tax-frazzled nerves

Tax time doesn't have to be nerve-wracking. Did you know that less than 1% of people earning under $1 million get audited, and 75% get a refund? To be sure you get back all you deserve, try to contribute as much as possible to tax-smart retirement saving plans, get any stimulus you're due, and take advantage of deductions like those for charitable giving.

Think about inflation protection

The $1.9 trillion stimulus has finally passed—good news for millions of struggling households and businesses. But longer term, exploding federal deficits and Fed stimulus could mean higher inflation and slower growth. For investors, inflation hedges could include Treasury Inflation-Protected Securities, commodities, non-US stock, and low priced value stocks.

Keep perspective on bitcoin

It's been called "digital gold," and some think it could act as a store of value and hedge against inflation. But keep perspective: Bitcoin is still a relatively new option for investors with a market value of $1 trillion versus $11 trillion for gold and $160 trillion for stocks and bonds. And investing in cryptocurrency is potentially fraught with risks from regulators, competitors, volatility, and other factors.

Watch home-builder stocks—they could go up

Home prices soared in 2020 as housebound workers looked to trade up for more space. With housing inventory at a low point and the work-from-home trend continuing, it's likely that the home-buying frenzy will continue through 2021. That may be good news for the stocks of home builders and related companies.

Help a newbie start investing

Starting with your time frame and risk tolerance can help you decide how much of your investment mix should be in stocks. Once you know that, filling your portfolio with investments may be a little bit easier. There are even low-cost, all-in-one mutual fund and managed account options. If you, or someone you know, wants to learn how to get started, this story may help.

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