Yahoo Finance I’m a Financial Influencer: These Are the 6 Most Common Money Questions I’m Asked
With general financial literacy and better financial planning exploding on social media, millions of folks are turning to financial influencers to get their money questions answered without breaking the bank.
What are people the most curious or confused about? What are they reaching out to financial influencers to find out about? And how do financial influencers answer their queries or point them in the right direction?
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GOBankingRates spoke with Jeff Sekinger, a financial innovator and entrepreneur, and the CEO and founder of Nurp LLC. Sekinger courts a following of 1.1 million on Instagram.
These are the six most common money questions he’s asked — along with how he answers them.
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‘How Might a Trump Presidency Impact the Economy?’
Sekinger is constantly spammed with burning questions about money. A common one recently revolves around Trump. Specifically, if Trump is re-elected, how would his presidency impact the economy? More specifically, which markets, sectors and companies could benefit?
“A Trump presidency could have significant implications for the economy and markets,” Sekinger said. “Some investors are optimistic that Trump’s policies, like tax cuts and deregulation, could boost the economy and markets. Others are more cautious, citing concerns about Trump’s trade policies and potential geopolitical instability.”
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According to Sekinger, companies that could benefit from a Trump presidency are the energy, financial and defense sectors.
“On the other hand, companies in sectors like healthcare and technology might face headwinds,” Sekinger said.
‘What Do I Need To Know To Be A Successful Young Investor?’
Everyone on the path to financial freedom needs to be investing. Investing can be complex, and naturally, people have questions. Commonly Sekinger is asked what you need to know to become a successful young investor.
“As a young investor, time is on your side,” Sekinger said. “Take advantage of compound interest by investing as early as possible, even if it’s just a small amount each month. Consider contributing to a Roth IRA or your employer’s 401(k) plan. Also, educate yourself about investing and avoid getting caught up in get-rich-quick schemes.”
‘How Can I Build Wealth While Managing Student Loan Debt?’
Millions of Americans are saddled with student loan debt. Some turn to Sekinger for advice on building wealth while managing this financial burden.
“Paying off high-interest student debt is important, but it’s also crucial to start building wealth as early as possible,” Sekinger said. “Consider contributing to a retirement account, even if it’s just a little each month. You can also explore income-driven repayment plans for your student loans to free up more money in your budget for saving and investing.”
‘Is Life Insurance Necessary?’
There’s some thick confusion around the issue of life insurance. People are asking, “Is it really necessary?” Sekinger argues that it depends on your circumstances.
“If you have dependents like a spouse or children, life insurance can provide for their financial needs if you pass away,” Sekinger said. “Even if you don’t have dependents, you may want to consider life insurance if you have significant debt or final expenses that need to be paid.”
‘What’s The Best Way to Think About Risk?’
Risk is an inherent and unavoidable aspect of investing. People are wondering: How can you best think about risk?
“The best way to view risk is the possibility of permanent loss of capital,” Sekinger said. “It is critical for investors to focus on understanding businesses and their underlying economics, rather than just looking at stock prices. As Warren Buffet has said, ‘Price is what you pay. Value is what you get.’ By focusing on value, investors can reduce their risk of losses.”
‘How Can I Educate Myself About Investing?’
Sekinger is often asked how to educate oneself about investing. As a big believer in self-education, he encourages people who want to be financially successful to do plenty of homework. This practice is the best way to answer your money questions.
“I spend a lot of time reading and learning about businesses and investing,” Sekinger said. “A useful tool for equities investors is reading annual reports, books about business and investing and financial news. I agree with Warren Buffet that by reading and researching you, ‘Go to bed smarter than when you woke up.'”
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This article originally appeared on GOBankingRates.com: I’m a Financial Influencer: These Are the 6 Most Common Money Questions I’m Asked
