Back to Basics

GOT QUESTIONS? We’ve got answers. This week, a new chapter was added to HumbleDollar’s online money guide. The chapter’s goal: to tackle basic financial questions that often crop up, especially among those new to the world of investing and personal finance.

This might seem like an iffy moment to make financial changes. I’d argue just the opposite is true. With the stock market down sharply, this is a great time to get started as an investor. Meanwhile, with the coronavirus spreading rapidly and the economy in turmoil, it behooves all of us to make sure we have the right insurance, enough emergency money and a buttoned-up estate plan.

The good news: None of this is that complicated. Want to get your finances headed in the right direction? Check out the answers to the nine questions below.

What should be my top financial priorities?
How much should I save?
How can I get started as an investor?
How much cash should I hold?
What mix of stocks and bonds should I own?
Should I buy into stocks slowly or all at once?
What insurance policies do I need?
How much money do I need for retirement?
What estate planning steps should I take?

Latest Articles

HERE ARE THE EIGHT other articles published by HumbleDollar this week:

“I advise against stock-picking,” writes Adam Grossman. “At its lowest point, the S&P 500 was down 34%. But that was the average. Across companies, there was—and continues to be—wide disparity.”
If you’re thinking of downsizing, Dick Quinn has some advice: Don’t do what he did.
The coronavirus is causing financial pain for many Americans. Among those suffering: doctors. John Goodell explains.
“I still recall the pinch in my long-ago budget,” reminisces Catherine Horiuchi. “But as I say goodbye to steady paid employment, I’m grateful for the early savings habit I adopted.”
Buying long-term-care insurance? Dennis Ho explains the four key differences between traditional and hybrid policies—and offers three tips to help you choose the right coverage.
“We should have conversations with our loved ones about the things they may cherish in our absence,” writes Dennis Friedman. “My parents would never believe the garden clippers would mean so much to me.”
Today’s economic slowdown has highlighted the typical American family’s perilous financial state. Will the coronavirus be a wake-up call? Dick Quinn has his doubts.
“Remember, spending today is borrowing from our future self,” notes Jim Wasserman. “The crucial question: Will our future self regret the spending choices we make today?”

Follow Jonathan on Twitter @ClementsMoney and on Facebook. His most recent articles include Growing Conviction, Facts of Life, Money and Me and 27 Things to Do Now.