Retirement? In This Economy? Here’s Your Backup Plan
Written by
Nicholas Morine
Edited by
Amber Barkley
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The economy is described with so many adjectives by many onlookers in contemporary news media: turbulent, embattled, unpredictable, gloomy, downbeat, troubled — none of these exactly inspiring confidence.
And for those contemplating their retirement plans — and frowning, or worse, as they see their portfolios bleeding red as markets take a beating — the current state of the economy may be more than a little depressing.
The reality, however, is that retirement planning still needs to take place, regardless of the macroeconomic portrait facing Americans at this particular point in time. A few tips that might help bolster your backup plan for retirement follow.
Invest — Cautiously — in Precious Metals
Silver and gold, silver and gold — not just a catchy holiday tune crooned by the late Burl Ives, but also the key to a balanced portfolio.
CBS News quoted Daniel Boston, founder of Preserve Gold, on the subject of adding precious metals to your retirement assets.
“Gold is generally considered the primary choice for retirees due to its long history as a store of value and its potential to hedge against inflation and economic uncertainty,” Boston said. “[But] silver can be a more affordable alternative with significant growth potential, especially during bull markets.”
One caveat: Precious metals in the form of physical bullion can still be lost or stolen. Be sure to keep your stash safe.
One benefit? You can’t spend gold or silver bullion on impulse buys, keeping your wallet safe from happy hour specials and tantalizing chocolate bars in the convenience aisle.
Automate Your Retirement Contributions
One silver lining to sullen consumer sentiment and a bear market might be that buying in could produce significant dividends when things hopefully — eventually! — take a turn for the better.
Not only will automating your retirement contributions keep you on the right financial track to enjoy some fun in the sun when you hit your senior years, but it may also score you a bargain when so many other investors are shying away.
“[Doing so] keeps you consistent and takes emotion out of investing,” CFP Michelle Crumm told USA Today. “When markets are down, too many people freeze.”
Pay Down Debt, Now (Seriously, Right Now!)
Finally, a no-nonsense tip from AARP: Pay down your debt, particularly your high-interest debt such as that resulting from outstanding credit card balances, first and foremost. The splurging on a Caribbean vacation or a Temu haul can wait until your debt is erased.
“The money you save in interest can be used to build your emergency fund. And, all things being equal, paying off a credit card that charges 16% interest is the same as earning 16% on your money,” AARP explained.
More From GOBankingRates
Sources
- CBS News, “Precious metal rewards and risks retirees should know.”
- USA Today, “6 ways to protect your retirement savings from a recession.”
- AARP, “A Recession Survival Guide for Retirees.”
