SPRINGFIELD, Ill. (WCIA) — As many struggle during the pandemic, more of you are investing.
We spoke to a professor at the U of I in Springfield. He says people are bored at home and want to learn more about investing, especially with savings rates being low.
But he says that to be safe, you should pay off all your credit card debt, establish an emergency fund, and make some plans for the long term. Then you can put money into more risky investments.
“I wouldn’t recommend taking on much risk until you kind of checked all those other boxes because there is a possibility you could lose a significant amount of your investment,” said Dr. Kenneth Kriz, a university distinguished professor at the University of Illinois Springfield.
He says it’s also important to diversify your portfolio by investing in a variety of items. These can include stocks, bonds, real estate, bitcoin, and commodities like gold and silver.
In other words, don’t put all your eggs in one basket.