Recession Survival Guide -Saving And Investing

Hiding money in a mattress might sound like a joke but there are actually "experts" who who have been advising people to do this. While it's understandable that people are nervous about the economy it's more important than ever to keep your money safe in an economic slump.

There are serious security problems with keeping large amounts of money around your house. It might not be a bad idea to have a little cash in a fireproof safe for emergencies like natural disasters. Please don't hide it under your mattress though.
If you have a fire or get robbed that money will likely be gone forever. Your insurance probably will not cover the loss.

Consult your insurance agent for details on what your policy covers.

If your money is in an FDIC insured account such as a savings account or a Certificate of Deposit(CD) it is covered up to $250,000 for each account. Money Market checking accounts are not covered by the FDIC. This means that if a bank fails, the depositors will be paid. Credit Union Deposits are covered by a similar agency called NCUA. For an explanation of FDIC insurance and its limits watch the following video. If you still have questions,consult your banker.

Honestly, this is a question only you can answer. It's true that the markets have been on a roller coaster lately. The rule of thumb is that if you'll need the money within 5 years it shouldn't be in the stock market. Your emergency fund and money for short term savings goals such as a down payment for a home should be in FDIC or NCUA insured products.

Money for retirement should be invested in an IRA or 401K account. Within these retirement funds you can choose from many different types of investments such as stocks, bonds and cash. Some experts don't advise buying stocks outside of retirement funds. Others say the low prices make it a great time to buy. Again only you can decide how much risk you're willing to tolerate.

Remember- stocks are for long term investments. If you"ll need the money within 5 years it shouldn't be in the stock market. Note: If you have questions about your investments you should consult your financial advisor.

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Gold and silver are never worthless. Right now precious metal values are at all time highs because of falling currency values. However, when world currency values are high gold and other metals tend to fall in value.

The average 10 year rate of return for gold is 5%. For the stock market it's 8%. It might not be a bad idea to have some gold and silver in your investment portfolio, however, it probably would have been better to have bought it when the prices were lower.

It could be a good time to sell gold or silver that you've been holding on to for a while. Consult your financial advisor for advice on selling your assets.

It's inevitable that people will get scared and confused when when a financial crisis threatens. But continuing your saving and investing plan will pay off big when the recession is over and the economy turns around again. And you can rest assured that it will.

The Recession Survival Guide is an inexpensive download that will give you many more tips to help you not only survive but thrive in an economic crisis.