blog . invest  .

3 minutes reading time (644 words)

5 Smart Investing Money Moves To Make In 2020 To Maximize Your 401k or IRA.

Happy New Year 2020! In 2019, almost every investing strategy worked: stocks, bonds, gold. The longest bull market in recent memory lives on! Most, if not all investors, made money in the stock market in 2019. But what if you could make even more money? Here are 5 bold investing moves to help you make even more money in 2020.

1.Maintain your 2019 asset allocation portfolio.

If you had a diversified portfolio in 2019 (large caps, mid caps, small caps, foreign equities, bonds), you most likely experienced a nice, positive return on your investments. If your 2019 allocation strategy worked for you and you are satisfied with the results, maybe you shouldn't change it. 

2. Add income to your portfolio.

In case the bull market of 2019 does not fully carry over to 2020, consider adding income to your portfolio to help counter potential losses or a slowdown. There are many investing strategies you can use to add income to your investment portfolio. You can generate income via bonds, real estate investment trusts (REITs) or high-yield dividend stocks, among others. 

[Related: 3 high-yield dividend stocks for the cheap investor]

Bonds are okay for income, but we don't really recommend them for two reasons. REITs were created to help the regular person invest in real estate. By the very nature of their design, they MUST pay at least 90% of their taxable income to shareholders in the form of dividends! Stocks give you arguably the highest potential for capital appreciation, compared to mutual funds. But they are riskier than mutual funds. If you can stomach the volatility that comes with stocks investing, consider adding a few high quality dividend stocks to your investing strategy to generate income. If you are not comfortable going along with dividend stocks, consider dividend mutual funds or ETFs instead. 

3. Max out your 401k or IRA.

The maximum annual amount you can contribute to your 401k in 2020 is $19,000. But if you are 50 years and older, the IRS allows you to contribute an additional $6,000 in "catch up" contributions. For traditional or Roth IRA accounts, the maximum contribution is $6,000 or $7,000, if you are 50 years and older. Consider maxing out your retirement accounts in 2020 to maximize your money.

4. Don't borrow or withdraw money from your 401k or IRA.

Just when everything seems to be going along just fine, this thing called life can throw you a financial curve ball. You may be tempted to withdraw or borrow money from your retirement account, but if you can avoid it or resist the urge, you will give yourself an opportunity to seriously maximize your money in 2020. 

[Related: 9 Costly Investing Mistakes That Make You Look Like a Rookie Investor.]

5. Learn how to navigate stock market volatility.

The stock market goes up and down. That will never change! Big losses are sometimes followed by big gains or even bigger losses. If you make any rash or impulsive investing decisions, you run the risk of missing out on long-term gains. If you want to maximize your investments in 2020, learn how to navigate stock market volatility with these three simple steps: 1) stay calm; 2) buy more or the dip; 3) prepare to re-balance your portfolio.

The bottom line

Maximizing your money in 2020 does not have to be complicated. You just need to be a disciplined investor and make a few changes to your portfolio--changes that fit your personal needs or investing strategy.

Please share this article. If you are interested in submitting a guest post, please click here. Here are a few other articles you may find useful: 3 large-cap growth index funds for your investment account | 10 shocking reasons why you will be broke at retirement | Dividends: A simple money secret you should know about | How to invest $50 | index funds vs ETFs vs stocks.

Ready to start investing? Choose a platform below.  

How To Invest Your 2020 Tax Refund To Build Maximu...
We Invested $27,000 In 3 Large-Cap Growth Index Fu...

Related Posts

 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Monday, 21 June 2021

Captcha Image

By accepting you will be accessing a service provided by a third-party external to https://newvestor.com/

Stock Screening Tool

Stock screening and investing made easy with Stock Rover. Discover your favorite stocks! Why Stock Rover? Disclaimer.

SPONSORED CONTENT

BECOME A FAN. SUBSCRIBE

Investing is for Everyone.

Investing is one of the best ways to build wealth quickly. Let's get you started below.

Investing can be intimidating when you're just getting started. Let's simplify it for you. Let's start with the building blocks.

Read our latest blog articles about investing, financial freedom and debt management. Give us your feedback.
Got $5, $50, $100, $1,000 or more? Investing your way up to financial independence is achievable.  Ready to get there?

#Featured Stories

#Sponsored Content

#Most popular

How to invest in real estate without buying properties.

Can you invest in real estate without buying physical properties? Yes, indeed! Here's your guide...

Poor? How to invest $50. Here's what we recommend.

Got $50 collecting dust? Get on the path to financial independence. Here's what to buy...

Cash is trash, not king. Invest your cash to build wealth.

Got cash sitting around? Being robbed by banks? Your money is losing value. Invest it to build...

#Product Reviews

Stock Rover: stock screener!

From stock screening and research to full portfolio analysis, we haven't found a more robust screening tool.
Read more

SoFi: Simple investing platform

Investing has never been so easier with SoFi. With a simple app, start investing in stocks, ETFs & Crypto.

Read More

Stock Rover: Stock Screener.

From stock screening and research to full portfolio analysis, we haven't found a more robust screening tool.

Read More

#Let's Invest!

Disclaimer: We may receive a commission for products or services you sign up for. Thanks! Full disclaimer.

#Get in touch.

Please fill out the form below. We will get in touch soon.

#Become a fan.

Subscribe for our latest updates, blog posts and investing tips. No spamming!