What Are Some Strategies to Safeguard my 401k in a Recession?

by | Apr 1, 2024 | 401k | 14 comments

What Are Some Strategies to Safeguard my 401k in a Recession?




Brent lost most of his 401k during the great recession and he’s worried it will happen again. His current 401k has no capital preservation option, and he has no way to take the money out. Wes helps explore what, if any, options Brent has to help save his investment.

Original airdate: June 11, 2017 – Hour 1, Call 5.

Wes Moss is the host of MONEY MATTERS – the country’s longest-running live call-in, investment and personal finance radio show – on News 95-5FM and AM 750 WSB.

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Please note, this information is provided to you as a resource for informational purposes only and should not be viewed as investment advice or recommendations. Investing involves risk, including the possible loss of principal. There is no guarantee offered that investment return, yield, or performance will be achieved. There will be periods of performance fluctuations, including periods of negative returns. Past performance is not indicative of future results when considering any investment vehicle. This information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. This information is not intended to, and should not, form a primary basis for any investment decision that you may make. Always consult your own legal, tax, or investment advisor before making any investment/tax/estate/financial planning considerations or decisions….(read more)

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A 401k is a crucial tool for retirement planning, but it can be especially vulnerable during times of recession. A recession is a period of economic decline characterized by a decrease in GDP, rising unemployment rates, and a decrease in consumer spending. During a recession, stock markets can plummet, and financial institutions can falter, putting retirement savings at risk.

So, how can you protect your 401k during a recession?

One of the most important things you can do is to diversify your investments. Diversification means spreading your money across different asset classes, such as stocks, bonds, and real estate. This helps reduce risk because if one sector of the economy is struggling, other areas may be doing well. By diversifying your portfolio, you can help protect your 401k from major losses during a recession.

Another strategy for protecting your 401k during a recession is to review your investment allocations regularly. While it’s important to have a long-term investment strategy, it’s also essential to adjust your allocations as needed based on market conditions. During a recession, you may want to shift some of your investments into safer assets, such as government bonds or cash, to protect your savings.

Additionally, consider reducing your exposure to high-risk investments during a recession. While these investments can offer higher returns, they can also be more volatile and prone to significant losses during economic downturns. By reallocating your investments to more stable assets, you can help shield your 401k from market fluctuations.

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It’s also essential to stay informed and educated about the economy and financial markets. By understanding how different economic factors can impact your investments, you can make more informed decisions about how to protect your 401k during a recession.

Lastly, consider seeking the guidance of a financial advisor during turbulent times. A professional can help you navigate market volatility and provide valuable insights on how to protect your retirement savings. They can offer advice on asset allocation, investment strategies, and risk management to help secure your financial future.

In conclusion, protecting your 401k during a recession requires careful planning, diversification, and staying informed about the economy. By following these strategies and seeking expert advice, you can help safeguard your retirement savings and weather financial storms. Remember, while it’s essential to protect your investments during downturns, it’s also crucial to have a long-term strategy that will help you achieve your retirement goals.

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14 Comments

  1. @hannahmonroe1277

    Great Video, Nice job you're doing. Just like most currencies, the price of Bitcoin changes every day. The only difference is that the price of Bitcoin changes on a much greater scale than local currencies.

    Even though there are multiple other factors which can affect the bitcoin value like the supply and demand,

    other cryptocurrencies and many other this can be used as a basic model and the rest factors can be manually studied as most of these factors are unpredictable.

    It can be used to get a fair idea of the prices and where the investments can be made.

    Bitcoin is still young and many sources says its here to stay. Hence it could be a good idea to invest into the same. It might be helpful to talk to a professional just in case you've got questions –

    John Peters runs a training program for Amateur investors who lack understanding on how Trading Bitcoin works,

    i contacted him and, he told me his fee for his program ( No upfront payments ) we started working ,

    he gave me guidelines on what to do, I started trading under his guidance same day, it was a bit complicated but I understood better after 3days, I continued with him for 3weeks, I made $28,OOO total which I paid him his Fee from,

    he's down to earth and always ready to teach, so contact him Telegram (@johnpeters) or whatsapp +17186828929

  2. @ericjames7907

    Amazing video! Well it takes patience and perseverance to value the true nature of investing. Prices pop up unpredictably on assets such as bitcoin everyday and if things are to happen, it will be very unwise for you not to know how to Increase your portfolio. I got this tips first hand from John Peters ,he’s always one step ahead of other traders, he fully monitored all my trades to avoid me making mistakes and losing my money, my earnings has increased drastically from 2 Bitcoin to 9 Bitcoin in just 4 weeks and some days. You all can reach out to him through WhatsApp on +17186828929 or telegram @johnpeters for any inquiries on how to start investing safely!

  3. @bitboycrypto8297

    One of my best channel here on youtube mate. Cryptos on a surge ones again. This development would definitely get crypto holders in a fine mood, not me bro. It's the crypto market, it goes up and down that's just what it's meant to be, personally though I've always favored looking towards the bulk rather than wait and earn in bits, reason I still see trading as the most lucrative opportunity crypto has offered till date, initially though trading was an issue for me owing largely to my inexperience and poor trade placement a, however the last few months have been really revealing, under the guide of trading expert John Peters , I've been able to carry out trading sessions to near perfection using the prolific signals which he provides, allows one learn even whilst earning big. For strictly crypto inclined challenges John may be contacted on Whatsapp +1-718-682-8929 and telegram @johnpeters .

  4. @bradleywilliams7654

    Actually investing was not easy for me.
    Lost a lot of money through +500,FBS also lost a lot of money to trading assistants and copy trader's, almost gave up on forex/ Bitcoin trading. but a friend of mine introduced me to a good broker, at first I thought it was another way of wasting my hard earned savings. But my greatest surprise was my investment of $7,000 came out with $14,580 in 10 days trading….. You just have to be patient with them till your trades are completed….. To be honest I didn't just recovered all my previous losses.. I made much more than my past expenses.. actually he charges 15% which won't affect you in any way since his trading efficiency comes in multiples of investment…
    I personally recommend Mr John trading services for best copy trading always trade with them and stop loosing your money…. reach out to him and believe me a trial will convince you
    Here's his contact details⬇️⬇️⬇️
    +1 7 1 8 6 8 2 8 9 2 9
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  5. @ohsoleanna7975

    Yes i have transamerica . do you know anything about them ? need to money around to save it if beden wins ..

  6. @bigtxbullion

    Its time to move into these very soon.

  7. @YanesCorner

    Would you please help us? Our 401k dropped almost 19% and we don’t want to loose anymore $ as we want to have that for a house down payment once market goes down. Right now we have 82% in stocks, 10 blended and 7 on short term. Thank you in advance!

  8. @antonioosorio3956

    Too late for me to watch this video, I just lost 4 thousand dollars this week

  9. @davidricardo86

    Awesome! I found my 401k stable return fund. It will come in handy soon enough.

  10. @ravensvc1

    Thank you for this information!

  11. @bruhwhotips6905

    Exactly what I was looking for. Thanks!

  12. @force263

    Any way to get back the 4 minutes of my life, and then someone could just TELL me about Safe funds?

  13. @kevinnaj1518

    Could you please give me advise on the best solution for protecting $15K in IRA account?

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