Entering the new year, people often set a variety of goals – or resolutions – they want to try and accomplish. According to statista.com, the top New Year’s resolution for 2025 (according to survey respondents) is “to save more money.”
Obviously, putting money away in a savings account can help achieve said goal, but for those willing to take more risks and try to outpace inflation there is another option – investing in the stock market.
Austin Lee
For those looking to invest, local financial advisor Austin Lee of Edward Jones noted he has three questions he typically asks potential clients looking to invest.
The first question is: why? The reason behind the decision to invest usually serves as the “north star” to help figure out the next question: how? Because anyone looking to invest can either do so on their own or seek out a financial advisor like Lee.
“Part of the value of working with somebody like me and any professional advisor is the accountability you get with it, because they help you think through that first question,” Lee said. “If people are thinking about investing, I usually recommend just going and talking to a professional … at the very least you’re going to be able to organize your goals.”
Lee noted that most companies will also offer free consultations to help work through those first questions.
The third and final entry-level question is about weighing risks versus rewards, with Lee noting he will do a risk tolerance questionnaire with all new clients.
While individuals can go it solo, Lee said it is easier to work with an advisor who studies market trends, as he said it can be easy to fall into the trap of investing in a stock because the current return is the highest. That might change drastically the following year.
Although the words of famous investors will note that you “can’t time the market,” based on the why and the how individuals are looking to invest Lee said there is not really a bad time to dive into the market.
“Depending on what you’re investing in and when you need it back, anytime is a good time to start,” Lee said, whether it’s for an investment plan, house downpayment, bucket list trip, etc.
But whether you use an advisor or invest on your own, there is one word Lee said is important to keep in mind – discipline.
That is one of the biggest reasons Lee said clients work with financial advisors, as it’s easy to be confident when the market is high but harder when going through valleys – but the why and the how behind the investing strategy can help in navigating the sometimes choppy waters of investing.
“Even the most disciplined investor sometimes needs to hear a reminder about why they’re doing what they’re doing,” Lee said. “You have to be able to separate the fear from the facts.”
Megan Sneller
Not just individuals, but government entities can also invest to make their money work for them – something the city of Derby has been doing as long as has been allowed by state statue, according to Finance Director Megan Sneller.
Typically, the city will take any idle funds and invest them – trying to make money off those funds and help offset other financial needs. For 2024, the city had a little more invested as there were some bonds issued where work had not yet begun.
“While we’re waiting for the projects to progress and make payments, we can invest that money,” Sneller said. “If I don’t think we’re going to need that cash in the next couple of months then we’ll invest it into a CD or treasury note.”
Highlighting the market variations, there has been quite a range of investment returns for the city over the past seven years – from a high of $2,841,523 in 2024 (partially due to a higher number of investments) to a low of $36,599 in 2021.
Like the idea of offsetting inflation for individuals, investment returns can help balance out some other revenue needs of the city. While that typically applies to property tax, Sneller noted returns helping make up for lower revenue in another fund in 2024.
“This year we saw a big loss in sales tax from what we thought was going to come in, so this helped offset that,” Sneller said. “Unfortunately, it was kind of a wash.”
Comparing a government entity to the abilities of individuals, Sneller noted the latter has more investment opportunities available – though the city, like individuals, has to be prepared for the market volatility (and plans for such).
Lee has been helping clients at the Edward Jones office off Madison Avenue for nearly eight years now. While there are a lot of variables that play into the success had through investing, whether it’s someone forging their own path or one of his clients, he noted spreading the money around is a key to long-term success.
“If you want a more stable output, then invest in a lot of different kinds of companies. You’re going to get a more consistent approach,” Lee said. “We’re not trying to get home runs; we’re just trying to get on base. We’re going to move somebody around; that’s how you’re going to win the game. Home runs are great, but if you only swing for home runs you get a lot of strikeouts too.”
