How to Prepare for a Market Crash Coming: Tips and Tricks to Keep You Safe

Shawn Plummer

CEO, The Annuity Expert

It’s no secret that the stock market is a roller coaster. One day it’s up, and the next, it’s down. Many people are worried about what will happen when the market crashes again. Will they lose all their money? Will they have to sell their house? In this guide, we will discuss how to prepare for a market crash coming, and tips to keep you safe!

How to Prepare for a Stock Market Crash Coming

Create A Plan

The first thing you need to do is create a plan. This plan should include how much money you have, what investments you have, and what your goals are. You need to know how much money you can afford to lose and what your goals are for the future. This will help you make decisions when the market crashes.

Diversify Your Portfolio

Next, you need to diversify your portfolio. This means that you should not have all your eggs in one basket. It would be best if you had a mix of stocks, bonds, and cash. This will help you weather the storm when the market crashes.

We recommend utilizing a non-qualified fixed index annuity to help protect your portfolio from a market crash. A fixed index annuity earns interest based on the performance of an underlying index, such as the S&P 500, Nasdaq, or Dow Jones. But, your principal is protected from market volatility, so you will not lose any money even if the market crashes.

If you need help choosing the right stocks, we recommend the following:

Help Choosing Stocks
The Motley Fool

Stay Calm

Finally, it would help if you stayed calm. When the market crashes, it can be tempting to sell everything and panic. However, this is the worst thing you can do. If you sell everything, you will lose all your money. So instead, you must stay calm and wait for the market to rebound.

Crash Is Coming

How to Prepare for a Market Crash Coming If Near Or In Retirement

If you are retired or close to retirement, you may consider selling some of your stocks and moving into cash, annuities, or bonds. This will help you protect your nest egg from a market crash.

You can utilize an annuity in two ways: safe accumulation and a lifetime income stream.

An annuity, in addition to Social Security, will provide an income for the rest of your life, even if the annuity runs out of money. This is your retirement income foundation. The remaining savings can be used for investments.

Utilizing a fixed index annuity will help keep your money safe and allow you to participate without worrying about a market crash.

A fixed index annuity earns interest based on the performance of an underlying index, such as the S&P 500, Nasdaq, or Dow Jones but with a floor so that your principal is protected from market volatility.

You may also want to consider downsizing your home. This will help you free up cash if you need it when the economy crashes.

Finally, make sure you have an emergency fund. This should be a savings account with enough money to cover six months of living expenses. This will help you cover your bills if you lose your job or have a drop in income during a stock market crash.

Next Steps

No one can predict when the stock market will crash, but if you are prepared, you can minimize your losses and even come out on top. We hope our tips have given you a better understand of what to do when the next stock market crash happens. If you have any questions or would like more information, please don’t hesitate to contact us. We are here to help you protect your hard-earned money and ensure a comfortable retirement.

Market Crash Coming

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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