Go Banking Rates’ recent article, “3 Ways to Recession Proof Your Retirement,” says there are a few moves you can make now while things are volatile and can pay off significantly down the road. Here are a few ways you can recession-proof your retirement.
Have A Financial Pro Look Over Your Plan. It’s wise to review your long-term financial plan with an expert regularly. You may be shocked by how much you can benefit from just one meeting. Even if you’ve already created a plan with the help of a professional, you may find that your plan needs adjusting, especially in an environment where economic factors are changing.
Protect Your Portfolio With Precious Metals. Precious metals frequently outperform other investments in a volatile market, and their value tends to rise with inflation. That makes them an effective hedge during uncertain economic times. You can open a gold or silver IRA, and funds can be rolled over from existing retirement accounts. You can also buy gold and silver directly as a way to recession-proof your retirement.
Generate Passive Income and Receive Regular Payments. One of the most common ways to generate passive income is to own rental property, which usually requires a large upfront investment. One way to address this is with a company called Arrived. This company gives people access to the rental home market. For an initial investment of as little as $100, you can participate in their platform and buy shares of pre-vetted rental properties. All the work is done for you, and you’ll benefit from property appreciation as the value of the home appreciates over time. Owning rental property is a very popular way to generate passive income in Miami. However, investments such as this, where you’re buying a share of a property instead of investing in an entire home, may not be transferrable upon your death. An experienced financial advisor can tell you if this is the best way to go if you want to leave a legacy for your children.
You’ve likely been saving for retirement for a long time. Now is not the time to change that big-picture thinking even if you’re worried about ways to recession-proof your retirement. Keep up the safe and steady progress while also exploring ways to make the most of your savings.
Some of the best strategies along these lines are hedging your investments with something like gold or silver and building your passive income without taking on too much risk.
Whether or not you participate in those strategies, an experienced financial advisor can assess your circumstances and set the best path forward.
Reference: Go Banking Rates (Aug. 1, 2023) “3 Ways to Recession Proof Your Retirement”
