Tips During An Economic Crisis

Investment tips

Published: February 23, 2022

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If the last two years have taught us anything, the unexpected can hit us at any time, so you have to prepare for the worse.

At the beginning of the COVID-19 pandemic, our world and economy did not know how to react to its effects. We witnessed jobs lost and people urging help. This eventually requested our government’s help.

Our government helped in the way it could, but money printing decisions brought our economy to new inflation all-time highs, and the entire nation felt it. Several probably had a plan, but not everyone.

Sure, a pandemic is not something that is planned. There is no way to know it’s going to happen. But that’s why it’s important to be prepared for any emergency.

The pandemic was economically effective, and we’re still dealing with some of the consequences. And this is not the first time our nation experiences a crisis. 

The Great Depression and stock market crash of 1929 left the entire nation devasted, financially and mentally. The advantage we have now is that we have more resources to help us.

So it’s important to stay ahead and prepare for any pandemic, economic depression, or crisis that can affect you, your family, and your investments. 

Key Takeaways

  1. To prepare for any economic crisis, you need to continue working to have enough cushion for several months of loan payments.
  2. Invest and diversify. Whether you are an investor or a new investor, you need to invest in as many assets as possible to balance and mitigate risk.  
  3. Invest in a retirement account too. A Traditional IRA or Roth IRA is the best account for retirement. 
  4. More importantly, make sure you invest in safe investments. Invest in a hedge like Gold that will store the value of your money. 

Continue Working To Build More Cushion 

There are different approaches or strategies that you could take to survive an economic crisis. Do note the folks at Noble Gold are not financial advisors and only share educational tips that may help. 

You know by now that everyone has debts. The more business ventures one has, the deeper that person is in debt. 

The COVID-19 pandemic taught everyone valuable lessons. One is that having a sound, safe, and flexible cash flow is not enough. You need to have enough cushion so that you won’t ever have to default on loans in case the economic distress gets worse. 

To save a fraction of your income, you need a steady money source that will continue. By no means necessary, you cannot stop working. You need to maintain your recent job and search for more sources of income. Don’t settle for a single source of income. Do more. Be more.

That’s the best way to guarantee that you will continue to earn money to secure your future by reinvesting it more. And a way to reinvest it more is to diversify. 

Portfolio Diversification

If your investment portfolio has some stocks, crypto, or real estate, that’s phenomenal. Noble Gold always advocates for portfolio diversification. It’s important to have investments in as many assets as you can. 

Do your due diligence and include different assets in your portfolio that fit your lifestyle and your liking.

Keep those investments, and don’t sell them. No matter how bad the economy is, don’t sell your assets. You haven’t lost anything if you haven’t sold anything. 

At some point, the market will get better, and if you have your investments, you could be at an advantage depending on the investment. 

If you don’t have an investment portfolio, it’s time to move fast and start building it to have something to lean on in case of an emergency. 

Invest in Stocks, ETFs, Bonds, and as many assets as you can. Investing in one asset puts you at a greater risk. If that asset crashes, you will crash with it. So diversify to spread the risk.

Invest in higher risks and plan to switch to a more conservative one near retirement. You have the chance to recover from possible losses. Take an opportunity for greater gains. 

Everything is a risk, but some are riskier than others. So create a risky pile in your portfolio. 

Generally, riskier investments offer more gains. And usually, that’s what you want, more gains. For this, you can invest in crypto. Everyone knows just how volatile that is. Therefore, only contribute 10% of your portfolio to your risky pile and slowly start growing it.

The concept of an investment portfolio is to go crazy and invest in protecting you from any economical disaster. It is not meant for you to invest and spend all your money. Only invest and spend what will not hurt you to lose. 

So now that you have your investments in stocks, dividends, or crypto, the next step is to invest in a retirement account. 

Invest In A Retirement Account

Different retirement accounts offer various perks for your specific lifestyle. The retirement account you would probably prefer to invest in is perhaps a self-directed IRA.

A self-directed retirement account has two reasons why it is the best choice. The apparent reason is that it serves as an excellent source for retirement.

With a self-directed IRA, you can either go the traditional route and open a traditional IRA account or open a Roth IRA account. 

While lower- to moderate-income workers may opt for a Roth IRA because they expect to be in a higher tax bracket when they start withdrawing their retirement savings, higher earners may anticipate being in a lower tax bracket in the future, making the traditional IRA the better option.

Deciding which retirement account is the best for you depends on you as an investor and whether your tax rate in retirement (or whenever you start withdrawing your funds) will be higher than it is currently. 

Whichever you decide, you will have the opportunity to utilize it for its primary purpose, alternative asset diversification. 

With a Traditional IRA or a Roth IRA, you can diversify and invest in alternative assets. 

Now that you have stocks, real estate, and bonds in your portfolio, invest in alternative assets with your retirement account. 

Open an IRA and add the only asset that will be able to pick you up if everything goes downhill. 

Safe Investments

Gold is the only asset that could protect you and your wealth if the economy sinks. If the economy fails, Gold is the asset that you could lean on and count on to store the value of your wealth.

It all leads up to protecting your money. 

You worked very hard for your money, so you need to protect it in case of an economic emergency. Gold is the only asset that stores the value of your savings. 

So you need to make sure that your investment portfolio has the only insurance that will support you in case you default on your loans or need extra support for a couple of months. 

And remember, Noble Gold is all about advocating for diversification. Stocks, crypto, or ETFs, are great investments to own. And they should be in your investment portfolio. But you need to make sure that you are also investing in safe assets. Gold and silver are the only assets whose value will be the same today and five years from now, or more.

In 1990, LA Times said $400 could afford you a month’s rent for a studio apartment by the national standards. It could also buy you an ounce of Gold. 

Fast forward to 2022, one ounce of Gold is worth $1,900. And $1,900 could pay your rent for a one to a two-bedroom apartment in one of the most expensive cities in the US, Los Angeles.

That is the concept of a hedge. A hedge stores the value of your money. 

Gold Is For War

Gold protects you from inflation or any economic downturn. You cannot trust the stock market or even the crypto sector to hedge your investment portfolio, but you cant trust gold. 

If you made it this far, worked this much, and opened your retirement account, the only thing missing is the only asset that will fight the economy in an economic war. Gold is for war.

In an economic war, your paper money and any security on paper are at a significant discount and practically worthless if you are losing. Governments renege on their paper promises after wars, either by not paying out, restructuring them into dust or simply inflating the value away. 

In an economic war, everything is down to its basics. The problems that blockchains and cryptocurrencies promise to solve won’t matter anymore. 

In an economic war, Gold is your form of currency. It is tangible, proven, and will retain its value and shape even after the war. The markets are transparent; they are saying “deflationary recession” ahead. 

Governments know it. Billionaires and millionaires know it. What are you still waiting on? Invest in Gold and Silver. Learn more about investing in Gold or Silver with our Investment Guide. Click the “Download the Guide” button in the navigation bar to download it for FREE.

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