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Recession fears have dogged Americans since the Covid years, and they\u2019re showing no signs of stopping.<\/p>\n
In March, J.P. Morgan’s chief economist said there’s a 40% chance the U.S. will face a recession in 2025. Veronica Willis, global investment strategist at Wells Fargo Investment Institute, says that whether a recession is coming or not, the economy is already in a \u201cslow patch.\u201d<\/p>\n<\/p>\n
Now, with a rocky stock market, President Donald Trump\u2019s tariffs and weakened tourism, the U.S. may be on the verge of an economic downturn.<\/p>\n
And while many Americans may find this concerning, there are ways to protect yourself and your investments from volatility. Below are three strategies for keeping your bank balance in the black and ensuring your investments are stable.<\/p>\n
Now more than ever, it\u2019s important to ensure your portfolio is properly diversified.<\/p>\n
Too much exposure to the stock market could mean significant losses, a thing you especially want to avoid if you\u2019re nearing retirement. Even in times of economic prosperity, retirees should look to trade in the bulk of their stock options for safer investments such as bonds, high-yield savings accounts and inflation-protected securities.<\/p>\n
Seth Mullikin, a certified financial planner in Charlotte, North Carolina, told USA Today that retirees \u201cdo not want to be withdrawing from an aggressive portfolio during a recession.\u201d<\/p>\n
Meanwhile, if you have decades before you retire, you may want to ride out the storm.<\/p>\n
\u201cThe fact that the stock market is down 7% or 10% now isn\u2019t so concerning,\u201d Sean Higgins, an associate professor of finance at the Kellogg School of Management at Northwestern University, shared with USA Today on April 3.<\/p>\n
In fact, this might be an opportunity to buy up stocks that are selling low but have growth potential for the future. It\u2019s \u201ca great time to buy stocks because you\u2019re getting them at a discount,\u201d says Willis.<\/p>\n
Even small amounts can grow over time with tools like Acorns<\/a>, a popular app that automatically invests your spare change.<\/p>\n Signing up for Acorns takes just minutes: link your cards, and Acorns will round up each purchase to the nearest dollar, investing the difference \u2014 your spare change \u2014 into a diversified portfolio. With Acorns, you can invest in low-cost ETFs with as little as $5 \u2014 and, if you sign up today, Acorns will add a $20 bonus<\/a> to your investment.<\/p>\n In the meantime, make sure you\u2019re also diversified with commodities like gold, which has been a strong player in these last few years of economic volatility.<\/p>\n Consider opening a gold IRA to take advantage of the tax benefits of this \u201csafe haven\u201d investment.<\/p>\n One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Thor Metals<\/a>.<\/p>\n Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.<\/p>\n To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals<\/a> on qualifying purchases.<\/p>\n According to LendingTree, the average interest rate for a credit card in the U.S. is 24.2%. If you are carrying a balance on any of your credit cards, now is the time to put a plan in place for paying off those debts.<\/p>\n During a recession, paying down debt and reducing expenses is essential. If you don\u2019t already have a budget and a spending tracker, now is an excellent time to put these measures in place.<\/p>\n If you’re struggling with multiple credit cards and high-interest debts, one way to start regaining control is by tapping into your home’s equity through a Home Equity Line of Credit (HELOC).<\/p>\n A HELOC is a secured line of credit that leverages your home as collateral. Depending on the value of your home and the remaining balance on your mortgage, you may be able to borrow funds at a lower interest rate from a lender as a form of revolving credit.<\/p>\n Rather than juggling multiple bills with varying due dates and interest rates, you can consolidate them into one easy-to-manage payment. The results? Less stress, generally reduced fees, and the potential for significant savings over time.<\/p>\n While you\u2019re in the process of budgeting, don\u2019t forget to review your fixed expenses like monthly bills, insurance and car loans. Set aside the time to call providers, like your cell phone and internet companies, and ask for ways to reduce your monthly bill. You might also shop around for better insurance coverage for your home and auto.<\/p>\n One option for finding cheaper coverage is OfficialHomeInsurance.com<\/a>, where you can find the lowest rates on your home insurance for free.<\/p>\n In under 2 minutes, OfficialHomeInsurance makes it easy and convenient to browse offers tailored to your needs from a list of over 200 reputable insurance companies.<\/p>\n Simply fill in a bit of information and quickly find the coverage you need<\/a> for the lowest possible cost. You could save roughly $482 a year!<\/p>\n You can also use OfficialCarInsurance.com<\/a> to ensure that you\u2019re cutting your insurance costs down to size, and keeping them within the scope of your budget.<\/p>\n