Keep Your Money Safe in a Recession

You’re nervous. The stock market is acting like a roller coaster and you would love to have a crystal ball to plot your next more. While reading tealeaves might not be a bad idea right now, there are some more conventional ways to keep your money safe when the nation is teetering on the brink of an economic downturn. Learn how to assess Money Market funds and shift your money to safe investments.

Find out how safe your money is in the bank. Check out EDIE – The Estimator. Run by the Federal Deposit Insurance Commission, EDIE allows you to search each bank where you have money to see how safe it is. (See Resources below)

Choose a less aggressive Money Market fund if yours is earning over 2 1/2-percent. Anything over that is too risky in a bear market. Reinvest in a more modest Money Market fund and stay safe.

Buy up some Treasury bills. These are safe investments in a bear market with a recession on the horizon. Select from 30-cay, 60-day or 90-day maturity dates if you have cash to invest. You can buy Treasury bills online at the Treasury Direct website. (See Resources)

Take out a HELOC now, before you need it. If you have a lot of equity in your home and are nervous about your income or your ability to pay your bills, ask your bank about taking out a Home Equity Line of Credit now, while you’re financially healthy. That way, you’ll have it available if you fall on hard times.

By ehow.com