8 investing moves to make before summer is over

Though summer only recently kicked off, it’ll be over before we know it, which means the clock is ticking to tackle some important investing moves. Here are a bunch to check off your list before summer comes to an end.

1. Check up on your asset allocation

One of the most important things you can do as an investor is make sure your assets are allocated appropriately for your age. If you’re a decade away from retirement or more, you’ll want to keep a large chunk of your assets in stocks for maximum growth. But if you’re older, it pays to shift over to bonds. Examine your portfolio now to see if changes need to be made.

2. Diversify your holdings

Are you overloaded with tech stocks? Does your portfolio not have a single energy stock in its mix? A diverse portfolio can not only help you grow wealth but also buy you some protection during stock market crashes. Make sure you’re well diversified, and if not, consider adding stocks from different market segments.

3. See if cryptocurrency is a good fit

These days, a lot of people are dabbling in cryptocurrency. Digital coins are very risky — more so than stocks, in fact. But if you have the appetite for risk, it could pay to put a small portion of your assets into crypto. Either way, now’s a good time to at least educate yourself on the different currencies out there.

4. Add some dividend stocks to your portfolio

Companies that pay dividends tend to uphold that practice even during periods of intense market volatility. It pays to add some dividend stocks to your investment mix, because you’ll enjoy an extra income stream you can utilize or reinvest.

5. Look at municipal bonds

Many investors these days are worried about inflation, and municipal bonds may offer a bit of protection in that regard. Municipal bond interest is always tax-free at the federal level, and if you buy bonds issued by your state of residence, you won’t pay any state or local tax, either.

6. Make sure you’re taking advantage of your retirement savings plan

Investing in an IRA or 401(k) plan is a great way to grow wealth for the future while also enjoying some tax benefits. If you’re not contributing as much as you can to one of these plans, crunch some numbers and see how much you can afford to ramp up.

7. Dump losing stocks while you can

If you have stocks in your portfolio that have been performing poorly, now may be a good time to unload them — before their value sinks even more. The good news is that you can use losses in your portfolio to offset capital gains, thereby easing your tax burden.

8. Look at opening a health savings account

Many people don’t regard health savings accounts (HSAs) as investment accounts, but that’s a mistake. HSAs offer the benefit of tax-free growth, and once you turn 65, HSA funds can be withdrawn penalty-free for any purpose. If you qualify for an HSA based on your health insurance plan, it pays to invest in one starting now.

Make the most of summer

You may be eager to spend the next eight weeks hitting the beach, hosting barbecues, and soaking up plenty of sun. But carve out a little time to tend to your portfolio, too. That way, you can set yourself up for a successful second half of 2021.

The post 8 Investing Moves to Make Before Summer Is Over appeared first on The Motley Fool

Original source: The Motley Fool

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