A Guide to Investment Protection During a Pandemic: How to Protect Your Money

Across the globe, stock markets have crashed downward due to COVID. While we’ve seen signs of optimism drive some markets towards recovery, on the whole, people have lost a lot of money since the beginning of this year.

If you have money in the stock market, in a savings accounts, tied up in businesses, or anywhere else, you may be wondering how best to ensure that what’s left of your assets stay safe. While there’s no sure-fire way to answer that question, this post shares some key investment protection and overall net worth safety tips that serve as great jumping-off points.

If your money matters to you, keep reading and learn how best to continue weathering this financial storm.

Adjust Your Risk Tolerance

Most people that play the stock market do so through their retirement accounts. Whether you have an IRA, a Roth IRA or a 401K, the assets your money is invested in are likely mixtures of securities, bonds and perhaps a small number of other elements.

Any time you’re investing in stocks, your money is exposed to volatility. That volatility, especially in today’s market, can create conditions for substantial losses.

For investment protection purposes, you may want to ask your investing body to reallocate your assets to more secure bonds, at least until the market evens out.

Liquidate Your Assets

All of the monetary investments in the world aren’t going to do much if you don’t have money to invest in your mortgage, food, clothes, and other necessities. If you’re strapped for cash and want to get your money off of the roller coaster ride that is today’s markets, consider liquidating and throwing your money in a high-yield savings account.

Savings accounts are federally insured, produce predictable interest rates, and can be withdrawn from without penalty.

This comes in stark contrast to retirement accounts and CDs.

Defer Debt

It’s been very hard for many Americans to pay down their existing debt in today’s crisis. What a lot of people falling behind on payments don’t know is that many lenders have been understanding of that hardship and have programs in place to help people make it through.

Apple, for instance, has offered payment deferrals on their credit card debt since April which has enabled those who have lost their jobs to forget about their credit card payments until further notice.

Several other financial institutions will allow you to defer your debt so you can invest in necessities. Give your financial partners a call and see what’s available.

Take Advantage of Government Assistance Programs

Never be too proud to get help from the government. After all, the money the government is offering to help relieve the pressure of COVID is money that you paid them in taxes.

The federal CARES act has been one of the premier programs that were put in place to get money into local, help-centered organizations and checks into people’s bank accounts. If you qualify for additional relief through CARES (expanded unemployment for example) apply and get what you’re entitled to.

Downsize

Nobody likes downsizing their lives but when it comes to liquidity protection, downsizing is often the most immediate way to have an impact.

As you downsize, start with big expenses like your car and home. Can you switch those things up for something cheaper? Can you modify your loan parameters to bring down your monthly payments?

After you’ve managed to save money there, move onto downsizing your lifestyle in the way of reducing the amount you go out to eat and making other adjustments that can stop your bank account’s bleeding.

Don’t Put Heath on the Back Burner

The number one reason why people declare bankruptcy in the United States is because of medical debt. Given that the medical environment has become increasingly challenging since January, your family’s ability to stay healthy is more difficult than ever.

Do what you can to stay safe despite those additional challenges, if not for your family’s comfort then for their financial future. After all, a few evenings on a ventilator with bad insurance could set you back tens of thousands of dollars.

Touch Base With Your Financial Advisor

Now is not the time to clam up when it comes to talking with financial experts about private equity performance and other important topics. Hopefully, you have some point of contact that has helped you with financial matters in the past.

If you don’t have an advisor you can speak to, see if your HR partner at work can connect you with a trusted vendor or if a family member can turn you onto someone.

Invest in Yourself

The best place to deposit your money that maintains its safety is in yourself.

The more skills you pick up during these uncertain times, the better your marketability will be in this shaky economy. Take this time to consume a class or to formally go back to school.

Being Proactive With Investment Protection Is the Right Thing to Do

When financial crisis strikes, some put their heads in the sand while others look for ways to ride the wave. We recommend doing the latter and hope we’ve enabled you to be successful at that now that you’re armed with our investment protection strategies.

The list we’ve shared is by no means comprehensive. So, if you find yourself in need of additional guidance, we welcome you to consider exploring more of the helpful content on our blog.

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