Knowing where to put your money can be difficult when the stock market takes a tumble. Do you sell everything and try to ride out the storm? Or do you buy low and hope for the best? This guide will explore some options available to you when the market crashes. We will also discuss staying calm and making intelligent decisions during these challenging times. Thanks for reading!
The first thing you need to do when the market crashes is to stay calm. Watching your portfolio value decline can be difficult, but it is essential to remember that this is a temporary setback. The stock market has always recovered from previous crashes and will likely recover from this. Once you have calmed down, you can decide where to put your money.
Buy Stocks At A Reduced Price
If you are still working and have a steady income, you may want to consider buying some stocks at their reduced prices. This is called dollar-cost averaging, and it can be a great way to build your portfolio over the long term. But, of course, you need to be comfortable with the risks involved in buying stocks, and you should only invest money you can afford to lose.
Another option is to invest in bonds. When the stock market crashes, bond prices usually go up. This is because investors are looking for a safe place to put their money. So bonds can be an excellent way to preserve your capital if you are retired or close to retirement. Just be sure to diversify your portfolio, so you are not too exposed to any investment.
If you need help choosing the right stocks, we recommend the following:
Consider Fixed Index Annuities
For retirement savers, fixed index annuities can be a good option for conservative and moderate investors looking for a safe place to invest their money. These annuities offer a rate of return based on the performance of a stock market index, but they also provide a guaranteed minimum rate of return. FIAs also protect from market losses.
Annuities can also guarantee your future income in retirement, starting today. This can be especially helpful if you are concerned about outliving your savings or not having enough money to retire. Again, this empowers your future retirement.
Knowing your money is safe can give you the peace of mind to weather any storm.
Investing can be tricky, but it’s important to remember that options are always available to you when the market crashes. No investment is entirely safe, but some are less risky than others. By diversifying your portfolio and staying calm, you can weather the storm and come out ahead. Thanks for reading! If you have any questions about investing or want a quote, don’t hesitate to contact us. We’re happy to help!
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