Whether you are close to retirement or not, and have some extra money, should you invest it in the stock market as of 2022? The short answer: Yes. Even though we are currently going through inflation and a possible recession, the answer is still yes. For as long as human beings are alive, money will be printed, worked for, and used to buy products and services. Whether you are in it for the long-term or the short-term, investing in the stock market will yield a greater return than any bank which currently believes that 0.01% or even 0.05% is doing you a favor.
I will tell you, if you must store your money in a bank from direct deposit or a short-term hold, than do so. Long-term, in my humble opinion, banks are really useless due to their greed. They could actually make a lot more money by offering higher interest rates, much more than the laughable 1% or 2% that they think is helpful. They have to abide by government regulations and all these prices are set, but the daring bank one day will provide 4% or 5% and this would show a shift in the banking system. It was once a thing and a thing of the past, and very unlikely to be seen again.
So storing your money in the stock market is a better place as long-term may yield well above 5% returns. Even in the short-term, while you may experience losses, you will still earn a lot more than just keeping your money in a bank. While it is not advised you take $10,000 $20,000, $50,000, or even $100,000 and throw it directly in the stock market, it is recommended that you invest in increments. For example, Amazon went on sale sometime at the end of May or early June. To throw all of your eggs in one basket and assume it is safe, over the long-term is a good bet, but you may see better returns on your investment if you invested $1,000 to $2,500 in Amazon's stock over the course of a few years.
With inflation rates at an all-time high with no end or plans from the elected administration in sight, the stock market is still your safest bet to your long-term savings. At this time, everything and everyone is suffering, especially 401ks, but there is a chance those will rise again. We will need a better administration in place to address these issues. At least we know that even 50 years of experience in government is not always going to save us. Fortunately, should it be the case where you lose your entire 401k and are retired, you will likely be protected by the government.
If you aren't anywhere near retirement age, inflation is something that may last a few years up to a half of a decade, but all things do eventually come to an end. Until then, take a look at your favorite stocks and take advantage of the fact that everything is currently on sale. It is a great time to buy more stocks and hold them for the long-term. You may also find some short-term stocks, hold for a few months up to a year or two, make your profits, and sell. It is your money. This is only advice. We will all get through this.