December 14, 2018

Tips on Safe Investing in an Insecure Economy

Tips on Safe Investing in an Insecure EconomyThe current economy has made most of us a little wary about our own finances. With more and more bailouts and personal and employer-based accounts and stock options losing more value each and every day, few of us feel confident to do exactly what the economy requires of us to make it better: to invest. You may be feeling like most, immobile, scared to make any actions financially. Here are the best tips on keeping your assets and financial investments safe during an insecure time in our economy.

Take Care of Credit Cards

It may seem like a simple number one on your list of financial goals to attend to, and one you-like most-have been meaning to do; but it isn’t a goal until you actually start doing it. There are a couple of good reasons that paying down balances on your credit cards now is a smart option in an economy that isn’t altogether investment-friendly yet. First, call your current creditors and ask for lower interest rates. Typically, after a period of paying on time will grant you a better rate, plus in the current economy they will be more flexible in giving better rates that will help you keep paying them. Secondly, paying off useless debt is always  a good idea, as it frees up your monthly allowance to spend and save without interest. Principal-as we all know-is best, especially in a time when employment and finances hang delicately in the balance.

Think Long Term Investing

Just because the economy is only offering low interest rates which takes away from your high yield expectations as of yet, does not mean that long term investments you make now won’t offer you an accumulated return in the long term duration of your investment. Choosing long term risk-free investments such as money market savings accounts and cds, give you the stability of stashing away your funds now, while still making some sort of profit in interest return. Just remember that even though cd interest rates seem depressingly low, there still is a variance from bank to bank; and that’s why you should always compare cd rates from bank to bank to get the best CD rates.

Nothing is Forever

Though every day the word on the street seems more and more grim, and forecasts on when we will get out of this crisis or financial slump unclear, remember that we always do. The financial health of our economy works on a cyclical basis, so eventually we will see a resurgence of spending which leads to bolstered confidence which leads to more spending, which leads to more lending, etc. In the next couple years, we will undoubtedly see improvement in the economy.
employee retirement plans

Wait it Out

On the tail end of the last tip, making sure you do not entertain any rash actions will help you best safeguard your finances and the welfare of the economy overall. This includes not pulling out on all stock options, employee retirement plans, etc at the first hint of stocks falling. Stocks will rise and fall, and surely, if you wait it out, the funds you may have lost will be replenished again.

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For other information on CD Investing Visit these sources:

The Securities and Exchange Commission
The Federal Trade Commission