Make Your 401k Plan Recession Ready

Make Your 401k Plan Recession Ready

Many people who have invested in 401k plans wonder how to make sure that their 401k investments are safe. Especially in times such as these, when the economy is fluctuating. Some months it seems to be on the rise, while other months it seems to get lower. This article will examine four ways in which to recession prove your 401k plan.

For starters, if you have risky stocks that are making you nervous because you fear that they may just drop any day now, take the investment that you have put into these stocks and trade it into bonds. These are much safer investments and produce less risk. This is the safest way to protect your investment and is the one that many people utilize.

Secondly, for those wanting a slightly riskier investment opportunity, consider dividend paying stocks. The problem with these are that they are hard to find in the US, most are a combination of domestic and foreign trades. However, they are relatively safer than just gambling your money on whatever type of stock you invest in. This is because the dividend that is earned on the stock is much similar to that of a bond that many people choose to invest in.

Third of all, watch the market. Look for those stocks that are familiar to the bear market. This means that over the past few months that these stocks have increased and do not seem to be stopping any time soon. When this happens, buy the stock. A bear market will have people buying the stocks and selling them for the higher price, then buying them again later when the stock falls again.

Last of all, consider leveraged inverse funds. These types of funds pride themselves on still increasing, while other markets are slowly crashing. It is a smart move for someone who is familiar with the market in which these funds are bought and sold.

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