How to Protect Your 401k or IRA from a Stock Market Crash

How long do stock market crashes last? How long does it take to recover your losses once a major market downturn occurs? What % of your 401k/IRA should be in stocks/bonds/cash?

With so many Americans leaving the workforce to retire on a daily basis, and over half of them heavily invested into the current stock markets through their current 401k or IRA, it is becoming increasingly important for new retirees to develop a plan to survive an incoming recession.

The next recession is already underway in this blogger’s opinion, going off of economic fundamentals such as slowing retail sales, the Federal Reserves’s decision to stop raising interest rates even a little bit, housing prices dropping and new home starts decreasing, as well as other indicators such as record corporate debt, record personal debt, record student loan debt, and record auto loan defaults.

Fortunately there is still time, but how much time, is anyone’s guess. So for now, retirees should be mentally prepared to adjust their portfolios at the onset of the next recession, since they are not likely to be able to continue working to wait out the market for a recovery, as many unfortunately had to do in 2008. Since it takes an average of 6 or 7 years for stock prices to recover (if the stocks’ underlying company did not go bust during the crash), most people simply cannot afford to hang out in the workforce until they’re 70 years old.

So here’s some things you can do either right now or when you’re reasonably sure the recession has begun in the stock market. Remember, the stock market is not always a good indicator of the real economy, and may be the last domino to fall.

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How to Protect Your 401k or IRA from an Impending Stock Market Crash

 

*A general rule is to have your age in bonds

If you are 60 years old, then around 60% of your holdings should be in safer financial instruments such as bonds and treasuries. The rest could be in stocks, though even that gets riskier as the recession approaches.

*Be ready to convert your stocks into cash and sit on the sideline for the time being

While it’s impossible to time the market, as the clock ticks on, it becomes clear that no business expansion cycle lasts forever. The current expansion cycle, largely boosted by central bank manipulation like quantitative easing as well as corporate stock buybacks and tax cuts for the wealthy, is about to break the record for the longest boom period in market history.

A retiree/potential retiree could start selling off their stocks gradually now and getting into cash in a money market fund or money market bank account. Remember, there is a difference between the two, as the former is not FDIC insured, but is still considered relatively safe

*Take advantage of the only remaining bargains on the market

Gold and silver remain historically undervalued and have found price stability for the last 5 years. While precious metals don’t always go up in price/value tremendously when the economy appears to be doing well, once the recession hits and investors flee to the exits, you can expect metals to go up once again as the Federal Reserve bakes more inflation into the US dollar.

One great way to invest in metals is to invest 30% of your current IRA or 401k into a Gold IRA rollover. We offer a free kit on this site to qualified investors. Just click the link below to find out more.

Want to Learn How to Rollover Your 401k or IRA to Gold?

401K Gold IRA Rollover Kit
 

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Do We Have a “Rational” Stock Market? -Market Manipulation Creates Mainstream Media Confusion

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US Dollar in Downward Spiral, Gold and Silver are Up

What are the driving forces behind the market moving higher? The Federal Reserve has promised to keep interest rates suppressed for as far as the eye can see. This is propping up the market, but it can’t save the dollar.

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401(k) and ira to gold rollover

US Dollar Takes Another Sharp Dive- What It Means for your Stock Portfolio

janet yellen sinks dollar gold jumps on fresh newsToday’s news on gold is influenced strongly by Janet Yellen’s continued con-artistry, and the resulting US dollar just hitting fresh 13-month lows.

The writing, it would appear, is on the wall.

Underlined. In bold print. Italicized, even.

The Federal Reserve echoed once again how it plans to maintain interest rates artificially low as the summer cookout of the books continues full stride into the latter half of 2017.

The stock market and housing markets don’t seem to mind. Central bankers afraid to burst our bubble?

You decide.

401(k) and ira to gold rollover

US Dollar Drops on Federal Reserve Remarks

 

With stock markets hitting record highs while P/E (price to earnings) ratios follow suit, many technical indicators are already showing some type of market correction in the near future. Other countries like Russia and China are buying up more gold and dumping US treasuries.

The recent drop in value of the dollar by about 8% could be one of the final canaries in the coal mine. This is why it would be wise to put a portion of your investment/retirement portfolio into a Gold IRA. It’s physical gold/silver that you can hold while receiving the same tax benefits of a traditional IRA or 401K.

Gold Increases Value on Poor Jobs Report

 

China and Russia buy up more gold, hide the official quantities reported

 
Just remember that as China builds infrastructure and drops investment dollars into foreign economies, the US threatens to drop bombs in order to influence the world. With a $20 Trillion dollar debt and no possible way out of the current 0% interest rates, empires tend to want to go to war.

Good luck everyone and please plan accordingly.

-Patrick

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Regal Assets: Here’s why Your Gold IRA Purchases Have Been Decreasing for the Last 2 Years

gold ira rollover for us dollar drop
the US Dollar is taking another beating
No one knows why the US dollar continues to drop in value, the stock market is at all-time highs, mortgages are down, renting is up, the Federal debt is at 20 Trillion, and yet, gold and silver prices remain suppressed.

This is why buying a Gold IRA or Gold IRA rollover is a great idea for a safe long-term asset to prevent you from another 2008 or 2007 wiping out your wealth again, while allowing for you to take physical delivery of the actual metals themselves.

Of course the experts in mainstream media’s echo chamber will never tell you about their masters controlling interest rates, dumping gold and silver paper futures on Sunday nights or JP Morgan’s not-so-secret trading desk to keep the price of metals and metal IRAs low, but we will here today.
 

401(k) and ira to gold rollover

Good luck, and don’t end up in another situation like the 2008 stock market crash. Many economic signals are firing once again in the same vein.

As I clutch tightly my silver at night with the soundest of sleep 🙂