An Economic Recession is Around the Corner, Here Are 2 Ways You Can Protect Your Wealth
No one had anticipated at the beginning of the year that 2020 would be so rough. From the Australian wildfires to the COVID-19 pandemic, the new decade has presented a set of unprecedented challenges that have brought the global economy to a screeching halt.
The coronavirus epidemic has definitely left everyone scared, not just about their physical health, but also their financial wellbeing. The signs of stress are already starting to show in the stock market as investors go into a buying frenzy, forcing the economy to the brink of a recession similar to the crash in 2008 which cost so many people their jobs, savings and even homes.
But a stock market crash should not be a reason to panic over your retirement fund, because historically speaking, the values always come back up sooner or later. However, there are certain steps you can take to protect yourself in a time of crisis and make sure that your investments are secure.
Don’t Change the Strategy
It’s understandable that you’d want to change your investment strategy once the market takes a downturn, but resist the temptation and stick to your original plan. There will be people who will try to sell off their stocks to invest in gold or currency instead, whereas others will try to buy more stocks while they are still valued at a low price, but financial advisors advise that you stay put in your investment strategy and don’t deviate from it.
Need More Cash?
One of the biggest characteristics of an economic recession is sudden inflation that can leave you struggling to cope with increased mortgage payments. Even though low interest rates might tempt you into taking out more loans, financial advisors suggest holding on to your cash and not putting it towards another downpayment or car loan. Even with an emergency fund and a stable career, it always gives a peace of mind to have some extra cash lying around to cover any unexpected expenses.
Times in recession can be quite unpredictable so one should always be prepared for the worst. Maintain a certain level of liquidity to make sure that you’re not dipping into your emergency fund or your investment portfolio when in need of some extra cash. There’s nothing worse than having to sell off some of your investment at a loss because you aren’t able to meet your living expenses.
More in Lifestyle
-
`
The Lifesaver in Your Daily Routine: Brief Exercise vs. The Perils of Sitting
In our fast-paced, screen-dominated world, a sedentary lifestyle has become the norm. Many of us spend the bulk of our day...
December 3, 2023 -
`
From Child Explorer to Oldest Cover Model: Here’s What You Didn’t Know About Elon Musk’s Mom
There’s hardly anyone in the tech industry who isn’t impressed by the many achievements of Elon Musk, who founded PayPal, SpaceX...
November 2, 2023 -
`
5 Refreshing Summer Snacks to Beat the Heat
Summer is the perfect time to indulge in delicious and refreshing snacks that complement the sunny weather and outdoor activities. Whether...
July 5, 2023 -
`
Stop Gulping Too Much Lemon Water Or You May Suffer These Consequences
Lemon water has been praised for its link to many health benefits, including aiding in weight loss and boosting our immune...
May 7, 2023 -
`
5 Cooking Hacks for a Better Eating Experience
Cooking can be a fun and exciting experience, especially when you get to experiment with different flavors and techniques. However, it...
April 24, 2023 -
`
Constantly Looking for Food? Here Are Some Reasons You Always Feel Hungry
Getting hungry is nothing out of the ordinary — it is our bodies’ way of telling us that we need food...
April 4, 2023 -
`
If you Want to Look Like Jennifer Aniston, You Should Follow Her Sunday Routine
At 51, Jennifer Aniston joins the roster of gorgeous women who look like they’re only in their 30s. What could be...
April 4, 2023 -
`
This New Travel Offering Will Take You out of This World–Literally
Here’s some good news for people who have a taste for adventurous travel. Destinations will soon be broadened to include man’s...
April 4, 2023 -
`
Did You Know Cooking Meat at Lower Temperature Can Protect Your Heart?
Cooking food, especially meat, on low heat has been around for hundreds of years, perhaps since the discovery of fire. There’s...
April 3, 2023
You must be logged in to post a comment Login