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How to protect your investments during rough economic times: Feature Article

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People are concerned about their finances all the time but are more concerned about them when the economy is weak or shaky.There are always going to be ways to protect your investments and there will always be ups and downs in the market.Here are some things that you can do to protect your investments during rough times to help you stay grounded and wait out the difficulties.

Keep your employer's 401K

There are all kinds of investments that people choose to take advantage of when times are great and the economy is booming, but most investors have to leave their money in the account no matter what the economy and Wall Street are doing.One of the very best ways to reduce the risk of losing money on your investments and protecting them in rough economic times is to take advantage of your employer's 401k program.It is always a good idea to plan ahead and for the future.And if you have your own business and are entrepreneurial at heart or want to play the corporate game and climb the corporate ladder, you should always plan for the worst and expect the best.After all, even the wealthiest of people wouldn't complain about having a few hundred thousand dollars saved up and available to them when they "retire".Investing in a 401k is a very good idea no matter who you are.Many employers offer to match a certain contribution amount or amount of your paycheck when you are enrolled in a 401k through them.Many employers want to encourage their employees to save and invest and that helps the economy do better too.But one of the greatest thing about using your company's 401k is that you are instantly making money and gaining interest because they contribute to your plan as well.This could be considered free money or some would even consider it a 50% interest rate on your investment.No matter what the market is doing, if you are getting employer contributions to your 401k you are making out better than you would on your own.If you are not currently contributing to your company's 401k, now is a great time to start.Many people are tempted to take money out of an account when the market starts doing funny things, but this is almost always a bad idea.The fact that an account is losing money is discouraging to many people but there are also factors that many forget to consider when they are deciding what to do with their money.





Helpful Resources:

1. Protecting Your Mortgage
For many people, the home that they are paying a monthly mortgage on is their biggest investment.Learn how you can protect that investment even when the housing market is unstable.

2. Managing Your Investments
Read all about what one financial expert has to say about managing your investments during hard economic times by clicking on this link.Also read this expert's opinions for how recent economic hardships came to be.

3. Safeguarding Investment Accounts
Different investment accounts will react differently to rough economic times.This article breaks up some of the most common investments accounts and gives suggestions for safeguarding each one.

4. Opportunity During Tough Economic Times
You do not need to be so concerned about rough economic times that you live in panic.In reality, some rough economic times also open the door for the opportunity to thrive financially.

5. Best Ways to Protect Your Investments
This site suggests that the best ways to protect your investments through tough economic times include weathering those storms and keeping your money invested rather than pulling it out.

6. Sound Financial Advice
If you are looking for sound financial advice for tough times across a variety of investment and saving accounts, this article is definitely one that you want to look into.Just click here to learn more.

7. Still Invest
During tough financial times it is not a good idea to abandon all of your investment accounts in exchange for more liquid assets.Read why tough times are still good times for investing.

8. Areas That Cannot Be Cut Back On
During tough times most of us look at our budgets and try to decide what areas we can afford to cut back in.This article explains that there are 5 areas in your budget that you should not skimp on even during hard financial times.

9. Older Individuals Budgets
Rough economic times can be especially challenging for older individuals who depend more heavily on the performance of the stock market and the ability to receive government financial assistance.This article is specifically for the older generation.

10. Thriving During Though Economic Times
It is very possible not only to survive but also to thrive during tough economic times.Read this article to learn more about the simple investment decisions that you can make to better your financial outlook.




If you choose to cash out of your 401k before it matures or before you retire there are many bad things that could happen.When you cash out a 401k you are responsible to pay all of the taxes that you would have paid on it if you had not contributed to a 401k.You will also almost always be required to pay a penalty or fee of some kind.For many companies this fee can be upwards of 20% of the total value of your 401k.Talk about a bad investment decision!Unless you are at least 59 ½ you cannot withdraw your money without paying some sort of penalty.The amount of money that you request will be significantly lower that what you actually receive.You could also lose a great opportunity to earn more money and take advantage of compounding interest on your account.The market always dips and then inevitable goes back up again.You want to make sure that you are taking advantage of this opportunity.Another problem with this is that you will be opening up your money to creditors and anyone else who may have some stake in your money.It is very difficult for them to get at a vested 401k plan but if you withdraw the money, it will be much easier for them to gain access to.

Other investments and accounts

Many people are concerned about leaving their money anywhere.Some people are even concerned about leaving their money at banks wondering if this is safe.This has become a valid concern with so many banks closing and being taken over by the government.The truth is that your local bank is not going to be investing in bad loans and that your money is safe there.It is also ensured by the FDIC and this means that all of your money is safe in the bank up to a certain amount.You are able to keep your money in the bank and it will compound like other accounts.While Wachovia and Washington Mutual have been bought out and have collapsed, the accounts of members were not endangered but it was only the investor's accounts that were put at jeopardy.Most banks are expected to keep functioning even if they are bought out and they are responsible for the money that their members have invested.But you can still take some steps to make sure that your money is safe in the bank.First you should always put your money in a bank or credit union that is backed up by the Federal Deposit Credit Corporation commonly known as FDIC.If your bank is a member of the FDIC, your money is guaranteed safe up to $250,000.This is the new amount provisioned under the new bailout plan and the old amount used to be $100,000.This change is intended to give more security and safety to people who put their money in banks.If you use a credit union then you should make sure that it is backed by the National Credit Union Association or NCUA.

The FDIC also guarantees other accounts like IRAs and that are held at FDIC institutions.Most investors are used to there being ups and downs in the market, but some people have concerns about where their money will go if the company that holds their investments goes under.If you are concerned about this being the case with your investments, then you should find out if they are a member of the Securities Investor Protection Corporation or SPIC.This organization was created by congress in 1970 and it covers the investments of individuals up to $500,000 in the event of a market meltdown.This also covers if the brokerage that holds the money fails or if the securities are stolen.You should be aware that this doesn't cover the money losing value from the investment losing value.There is never a guarantee in place that ensures you will make money in the market or even be able to recoup your money.

Most people have had confidence that money market accounts were safe and could be trusted by people who wanted a very secure way to keep their money.But because of recent troubles, some people are concerned that this is not a viable source either.To reduce the anxiety of investors, the Treasury Department also guarantees money market funds using a Depression ear fund to back them up.

Many people are concerned that they won't be able to keep up with their mortgage payments and they may want to refinance but this isn't always an option.For many people, their home is their greatest investment and they need to be able to rely on the fact that they can have their home be worth everything it should be.

In order to keep your investments safe, you should always plan ahead and be sure to make the best choices possible.When you are investing in any kind of account, you should always make sure that you reinvest the interest dividends or distributions that you receive from your account so that you can truly take advantage of the concept of compound interest.This is a good idea and will allow you to make more money when you are combining.It is also a good idea to make sure that you earmark a certain percentage of gifts, bonuses and other additional money that you receive to invest so that you will be able to continue investing.No matter what the market is doing, the best thing you can do is to continue investing.It is also a very good idea to pay off your credit cards and other debts off each month as long as this is possible.Paying them off is always a good habit to be in whether you are going through a rough time or not.You should also budget a certain percentage of your income and plan on investing it.One of the best ways to make sure that your investments are safe is to keep investing.You also want to make sure that the amount of money that your employer withholds from your paycheck for taxes is the right amount - not too much and not too little.Paying the right amount of taxes will ensure that you don't have to pay taxes when you file your return and will also help you keep them most of your money possible so you are keeping your money as long as possible instead of lending it to the government free for a year.

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