editor's note
It’s Monday. But I’m already thinking about Friday. In my household’s bill cycle, that’s when it’s time to face our monthly credit card statement. I almost always cringe a little when I look at the total. I pay my cards off in full every month, but our spending often leaves little room for savings (thanks, inflation). I maintain that it’s better to swipe a credit card than a debit card for everyday purchases…buuuut it also makes it easier to overspend. Maybe I should try cash stuffing for a while.
— AJ Cohen / Money Editor / Brooklyn, NY
follow the money
How the news affects your finances.
Alternative Investments
Bitcoin is continuing to break records today after surpassing its previous all-time high last week. The coin’s rally, plus uncertainty around interest rate cuts, has some investors thinking about diversifying their portfolios. Enter: Alternative investments, aka things other than stocks, bonds, or cash. They’re not new or fringe — common alt investments include real estate and gold — but, historically, they’ve been out of reach for casual investors. Now, apps have made it easier to hold fractional ownership of assets like art or crypto. However, alternative assets can come with pretty high risks. If you want to add them to your portfolio, here’s what you need to know.
Your move:
Start small. When it comes to alt investments, a good rule of thumb is to invest only what you wouldn’t miss. A fiduciary financial advisor (hint: a pro who acts in your best interest) can help you decide which alternative asset might be right for you based on your financial goals.
Work with what you know. One of the hurdles to investing in alternative assets is learning new platforms, terms, and ways of buying and selling. If you’re considering crypto, one workaround is investing in a bitcoin ETF. This can give you some exposure but with less risk.
Think beyond crypto. There’s a lot of buzz around bitcoin, but there are plenty of other ways to expand your portfolio beyond the stock market that don’t involve the blockchain. For example, investing in real estate through a real estate investment trust, also known as a REIT.
for the group chat
The money stories everyone’s talking about.
Feeling extra Monday today?
Divide your list into teeny-tiny to-do’s and embrace micro-productivity.
Grab your calculator and double-check your work on your tax returns…
It could help you avoid an audit.
If someone offered you your job today, would you take it?
The answer could help you assess whether or not you’ve hit a “job plateau.”
How are millennials finding more ways to invest?
Hint: HSA dollars.
market update
The Wall Street trends to know this week.
Reddit is making moves to go public. In true Reddit fashion, the company launched (you guessed it) a subreddit for users to ask questions about the offering. Hint: Reddit plans to give top users early access to shares. Eligible buyers would be able to sell immediately, which could create “meme stock” potential when it debuts on Wall Street. If all goes to plan, it will be the latest social media company IPO since Pinterest in 2019.
5-minute money tip
One act of financial self-care you can do in five minutes.
Double-check your beneficiary.
We may not like to think about it, but (spoiler alert) we won’t be here forever. And if you can’t remember who you chose as the beneficiary on your financial accounts (think: your 401(k) and your Roth IRA), now’s a great time to double-check your pick. Because, as you go from being a millennial to an “elder millennial,” things change. Ex: After a divorce or a wedding, it’s important to make changes so your money ends up in the right hands.
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