Strategies for Financial Survival
Making the best of your assets during the worst of times
History may record that the decade between 2000 – 2010 brought financial reality to the American people.
Following the two strongest back-to-back decades for the stock market in American history, the above ten year period was marked by two of the most severe bear markets in history. Along with falling stock prices, we saw a collapse in real estate values, the highest levels of unemployment since the Great Depression, a threat of still another bear market, without, as yet, any hint of sunshine over the horizon.
The challenge for investors
There are, moreover, portents of rising taxes and declining social security benefits in the years to come. There are warnings of possible insolvency in government safety nets such as social security.
It may fall upon each and every one of us to provide for ourselves the financial security that we all desire.
The good news
The good news is that there are strategies by which we can all make our money go further.
For one, many Americans have already been increasing their savings, reducing their use of credit cards, in the process increasing their control over spending, while seriously reducing interest payments to credit card companies.
Surprising as it may seem, even the most dubious investment climates provide opportunities to make money. It is possible to find stocks that provide dividend income in the range of 6 - 7% per year. There are specialized mutual funds that invest overseas, that protect against inflation, that benefit from rising gold prices, that can benefit even from a weakening in the dollar among world currencies.
- The first rule of survival – create a plan
- The second rule of survival – stick with it
- Your first step is to reduce superfluous expenses to make money available to produce income for you. Just one meal per week taken at home instead of at an expensive restaurant could easily produce savings of $3,000 per year for just one person.
- There are investments that can be made with only a little money, investments that will contribute income to your nest egg almost immediately after purchase.
- There are mutual funds whose portfolios are designed to produce profit during rising, falling, or even flat stock market climates.
- There is a simple way to select safer-than-average stocks that are also most likely to prove profitable.
- And on the internet, you can find all sorts of information that can help you make investment decisions.
Looking forward to a prosperous future…
Gerald Appel is Chariman of Signalert Asset Management and author of more than 10 books on investing. Please read our disclaimer.