Money Management

A volatile stock market can lead to big fluctuations in your brokerage account. Stop stressing about these ups and downs with one simple tip. 

Since last year, we’ve been going through a volatile stock market. In fact, 2022 was the market’s worst year since 2008, with all the major indexes having down years. The S&P 500, an index that tracks 500 of the largest companies on U.S. stock exchanges, fell by 19%. So far, 2023 has seen its fair share of ups and downs, as well.

If you’ve been keeping track of your brokerage or retirement accounts, there have probably been times when you’ve logged in and seen that your investments took a hit. Rationally, you can tell yourself that this is normal, you don’t lose money unless you sell your stocks, etcetera, etcetera. But let’s be honest, it’s always unpleasant to see your account drop in value.

I’ve gone through the same worries. And since I like to invest often, that stress quickly got old. Fortunately, I came up with a simple trick that helps me feel much better about where my portfolio stands.

Focus on the gains, not the losses

To stop worrying about my brokerage account, I started focusing on the number of shares I own of an investment, not the current market value. Even if the market value drops, the shares I own keep growing, and I know they’ll be worth much more later.

For example, let’s say you own 500 shares in a mutual fund, and you invest $300 every month. When you logged in last month, the market value was $100 per share, and your account was worth $50,000.

This month, the price dropped 5% to $95 per share. Your account’s value is now $47,500. You certainly don’t want your portfolio moving in that direction, but you still own the same number of shares as before. And when you invest $300 this month, you’ll be buying at a lower price, so it’s like you’re getting a discount.

There are two reasons this works for me:

I’m confident in my investments. I mostly invest in a total stock market fund, and the stock market has a proven track record of success over long periods of time.I stick to long-term investing. The value of my shares could go up or down in the next few months, but over five to 10 years or longer, I expect them to appreciate quite a bit.

How to build a worry-free investment portfolio

The key to making this strategy work is to build a portfolio that you believe will have long-term success. So, how can you do that?

The easiest option for most people is to stick to investment funds, since these allow you to build a diversified portfolio in a single investment. A few of the most popular types of investment funds are:

Mutual fundsExchange-traded funds (ETFs)Target-date retirement funds

Mutual funds and ETFs are both pretty similar, as they invest your money in a large number of stocks. The main difference is how they’re traded. With mutual funds, the price is set once per day. ETFs are like stocks in that the price changes throughout the day.

Target-date funds are designed to set you up for a specific retirement year. The asset allocation in the fund changes as it gets closer to your retirement year to decrease volatility.

You could also pick stocks yourself and build a portfolio that way. It’s more time-intensive, as you should ideally find at least 25 quality companies to invest in. But this is a good option for investors who like to be more hands-on.

As I mentioned earlier, the bulk of my money is in a total stock market fund. It’s easy, it’s not time consuming at all, and I’m comfortable trusting that the stock market will do well long term. And that’s why instead of worrying about my portfolio’s day-to-day value, I just look at my shares to feel good about my investments.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.

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Updates to WIC-approved food could mean less milk. Find out how the changes could impact you. 

Proposals to cut the amount of milk provided by WIC — the Special Supplemental Nutrition Program for Women, Infants, and Children — have sparked outrage. The milk cuts are part of a wider USDA review of the food the program offers.

WIC is a federal program that provides food assistance for women who are pregnant or breastfeeding, infants, and children under 5. It’s aimed at low-income families who are at nutritional risk, and runs in tandem with other food programs such as the Supplemental Nutrition Assistance Program (SNAP).

On the plus side, the changes would also mean more money for fruit and vegetables, as well as more flexibility for people with special dietary needs. However, there’d also be a reduction in the amount of juice and milk provided. Given that the National Institutes of Health says many Americans don’t get enough calcium, it’s the milk aspect that’s attracting the most criticism.

Why the USDA wants to cut milk provisions

The first few years of a child’s life can be expensive, and WIC can ease a little of the financial pressure on parents. One of the many costs is making sure both mums and infants get the nutrients they need. The CDC says milk is a good source of vitamins and minerals like vitamin D and calcium.

The USDA has stressed that WIC is a supplemental program. That means it’s not intended to provide a full diet, but instead to add nutritious food to people’s existing meals. It says that its current packages provide as much as 128% of the recommended amount of dairy. According to its website, proposed changes would take this figure down to between 71% and 96% of the recommended amount.

The International Dairy Foods Association published a Morning Consult survey that showed over three quarters of WIC recipients were “very” or “somewhat” concerned about the reduction in milk. Over a third said they’d need to use non-WIC funds to buy milk and dairy products if the changes go through.

Worries about the plan prompted 28 members of Congress to write a joint letter to the United States Department of Agriculture Secretary Tom Vilsack, urging him to reconsider. “We are greatly concerned that reducing dairy in WIC food packages will negatively impact the nutritional intakes and health of program participants, as it will decrease their access to dairy’s nutrients at life stages key for health and development.”

How it will impact your WIC benefits

It’s important to stress that these proposals haven’t yet been incorporated into the program. The USDA gave people until February to comment on the changes, and it isn’t yet clear what will happen next. It may well be that pressure from lawmakers and the dairy industry will cause it to drop the dairy cuts.

Even if it doesn’t, it’s worth noting that there are some positive aspects of the new WIC food packages. Most importantly, WIC would continue to provide extra cash for produce. Part of the extra pandemic benefits saw people’s monthly fruit and vegetable allowance increase from $9 to $11 per month to $35 per month for children, $44 for pregnant and postpartum women, and $49 for women who are breastfeeding. The new scheme would not only make those changes permanent, but also build in annual inflation adjustments.

If you have food allergies or other special dietary needs, the new packages will have more flexibility. For example, someone who is vegan or dairy intolerant could substitute soy products. There are also more whole grain and canned fish options, all of which could help modernize the WIC-approved food list and widen the program’s appeal.

It’s worth noting that there are millions of people who are eligible for WIC and don’t participate. One of the reasons for updating the program is to try to change this and reach more people. It’s worth noting that while SNAP recipients automatically meet the income requirements for WIC, people who don’t qualify for SNAP might still be eligible. The income threshold is slightly more relaxed and there’s no limit on the amount of assets you can hold in a savings account and still qualify.

Bottom line

The Morning Consult survey showed some people were considering dropping out of the program entirely because of the cut in milk. Before you do that, consider the benefits you do get and how much they ease the pressure on your bank account. Even if you wind up getting less milk than you currently do, you’d still be getting more than if you don’t participate at all.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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You might seriously hold up your refund. 

As a general rule, once you submit your tax return, it generally takes the IRS 21 days or less to issue your refund. But in some cases, your tax refund might take a lot longer than that to arrive.

If you make an error on your tax return, for example, that could delay your refund, because the IRS will need time to sort it out. You might also experience a delay in getting your refund if you file your tax return on paper, as opposed to using software to file it electronically.

Meanwhile, a good way to expedite your tax refund is to sign up for direct deposit. But if you botch your checking account details and enter the wrong information on your tax return, you might set yourself up for the opposite scenario — a refund delay.

When you get your bank account information wrong

When you sign up for direct deposit of a tax refund, you’ll generally need to provide your bank account number as well as your bank’s routing number. Failing to enter both pieces of information correctly could delay your refund.

Here’s how some scenarios like this might play out. Let’s say you omit a number when entering your bank account details on your tax return. In that case, the IRS may not even attempt to deposit a refund into your bank account, but rather, it may just send you a check in the mail from the start. But that could cause your refund to take longer to arrive.

Similarly, you might enter the wrong bank account number, but one that’s a valid number for another account. In that case, your bank might reject the refund the IRS sends when the details don’t match up. In that case, the funds will generally be returned to the IRS, and once that happens, the agency can issue you a new refund by check. But again, all of that will take time, resulting in a delayed refund.

Now, what’s even scarier is that you might enter a bank account number belonging to someone else, and your bank may not spot the error and allow the refund deposit to go through. In that case, you may need to work with your bank directly to recover your refund.

But all told, a simple mistake like transposing some numbers could leave you with a big headache on your hands. So your best is to enter your banking details very carefully when signing up for direct deposit.

A second set of eyes wouldn’t hurt

Maybe you’re filing a tax return on your own and aren’t using a tax preparer. In that case, you may want to ask a friend or roommate to read your bank account details to you as you enter them on your return, or to double-check the information you’ve entered before submitting your taxes.

It’s easy enough to get something wrong when you’re entering several strings of numbers. But that’s also a mistake that could cause you not only a refund delay, but a world of stress you’d probably rather avoid.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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