First, we must recognize the situation we now find ourselves in was created by policy and both political parties have been complicit in their own ways. On a national and global scale, to achieve an economic recovery and prevent the situation we face now from recurring, tell your member of Congress to support responsible spending and sound monetary policy. If enough of us join together and demand sensible policies, we maximize our chances of being heard.
As for protecting your own assets, there are several strategies you could consider:
Annuities
An annuity is a financial product that can offer you lifetime income and grow your money while also protecting you against stock market volatility and inflation. In an annuity, a life insurance company assumes the risks posed by these scenarios, shielding your assets from being impacted. Annuities give you lots of options. People who are retired or approaching retirement like annuities because they can receive a monthly payment that they don’t have to worry about, but you can also protect your money in an annuity just for a specific time of volatility, like a set three or five year period.
Life insurance
Like annuities, life insurance policies such as Indexed Universal Life (IUL’s) also provide a way for you to grow your savings while being protected from economic volatility. These policies have two basic functions. They provide an asset that grows over time (and that you can withdraw money from if a need arises), and as the name suggests, it is also a life insurance policy … and given the uncertainty around us right now, making sure your family is protected is probably a good idea, right?
Gold
Typically, gold appreciates the most in times of uncertainty like we are in right now. In fact, from 1990 to 2020, gold increased in value by 360 percent. Nonetheless, as we are often reminded, “past results are not a guarantee of future returns.” Gold is a commodity like oil, wheat, or cattle, and its price can go up or down. However, unlike these other examples, gold is not consumed and can be used as a currency.
Stocks, if you pick the right ones …
Stocks are always a risky proposition but if you have a long time horizon and a diversified strategy, there are many businesses that tend to do well when the economy is bad. Think about brands and stores where people might shop if they’re on a limited budget, such as dollar stores and other discounters.
Real estate
Real estate is defined as property connected to land (as opposed to “personal” property like jewelry and automobiles). People will always need homes to live in, offices, and retail spaces. However, real estate is still part of a market and if people don’t have money to spend on homes or to invest in their businesses, prices may stagnate. If you plan to rent out a home, you also need to consider the likelihood that policies under discussion by policymakers like rent control and eviction moratoriums could impact your investment.
Stuffing your money under your mattress
I’m only kidding. Assuming high inflation, your money would lose value stuffed under your mattress.
As a licensed insurance agent with a background in Finance and public policy, I’d be happy to talk to you about how you can protect your assets in this time of uncertainty. My personal email address is [email protected].
Eric Eisenhammer
Eric is an Asset Protection Specialist. He is co-founder of Legacy Defender Insurance Solutions and holds licenses in Life and Property & Casualty insurance. Eric earned a bachelor's in Finance from California State University, Northridge and a Master's in Public Policy and Administration from Sacramento State.
