Viewpoints: Don’t make this IRA mistake
| May 6, 2021 |
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Don't make this IRA mistakeBest intentions: Pat on the back if you remembered to make any final contributions to your IRA or HSA for 2020. But there's a crucial next step: actually investing the money. This doesn't happen automatically, so those contributions will sit in cash unless you invest them.Financials and energy stocks surgeRiding the rebound: Cyclical sectors, including energy and financials, led the market's charge during the first quarter and look well-positioned to stay at the front of the pack, thanks to cheap valuations, rising inflation, and a continued economic recovery. Defensive sectors, meanwhile, may continue to lag.Save more on prescriptionsBills of health: Feeling the pain of rising drug prices? Taking a few proactive steps before you get your scripts filled might help reduce costs, like learning what "tier" your medications fall into, asking your doctor about lower-cost alternatives, and making your pharmacist a member of your team. Find out how.Companies warn on inflationSounding the alarm: A growing number of corporations have been warning investors that they see rising inflation as a threat to their bottom lines over the next few months, as the reopening pushes prices for inputs and labor higher.Cracking open the emergency fundBreak glass in case of pandemic: Raiding your emergency savings isn't a step to be taken lightly. But sometimes, it's what the situation (or your sanity) calls for. That said, if you had to spend down your savings in the last year, it's important to make a plan to start building it up again. |
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