4 Ways To Protect Your Assets During A Recession

If you have been paying any attention lately, then you no doubt are aware that there is a recession looming. This is exactly the time you need to start planning on protecting your assets to minimize the damage that can happen when the economy slows down.

Understand that there is no magic bullet, however, that can magically protect all of your money. The key is to reduce the risks of huge losses and position yourself to rebound quickly as soon as the economy makes a comeback.

If you are a business owner then this is especially important to protect the future of your company.

In this article I will go over several ways to protect your money to ride out the recession.

1-Park your cash

For many years, there was a fringe group of prepper types that railed on about how it was important to buy gold in case of an economic collapse. Well, it turns out they were not exactly wrong.

Nobody knows what is going to happen with this economy besides there being a guaranteed recession. It could bounce back very quickly in which case, you’ll want to liquidate as soon as possible and gold will allow you to do that.

If you don’t mind some risk involved, you can also use Bitcoin to store your money away. Yes, it can be volatile, but since it bottomed out recently, it has begun soaring yet again as people are looking towards the blockchain to protect their money. You need only compare the current Bitcoin price in USD to a few weeks ago to see how rapid the rise has become.

2 – Buy bonds

Bonds are a great way to park your money with very little risk. There has only been one year in the last 12 years in which there was a negative return. And it was only a 2.19% dip so it could have been worse.

In general, you can expect a return of around 3% per year in bonds. Nothing to get excited about if you are looking to make money. Yet, if you are just trying to protect your assets then this number looks fantastic.

There are a number of different kinds of bonds to choose from like US bonds, municipal bonds and corporate bonds.

3 – Certificate of deposit

A CD is another very safe way to protect your money. It is better than using a savings account as it can generate some interest. The interest rate is very low, however, so that alone is not enough of an incentive for most people.

The attractiveness is the fact that your money is protected and safe while the market fluctuates and is unpredictable. There is added security in the fact that your money is FDIC insured.

4 – Diversify

You should always have your money in different areas to diversify your investments. It is also helpful as a way to spread out the risk. With things so uncertain right now, it is hard to know what the best path is to take so take a few different ones with regards to your money. Don’t put it all in one place.

Save some, and even invest some to take advantage of low priced stocks that can be worth quite a bit when the market comes back.