Investing your money in the stock market is certainly the most practical way to save for your future and retirement. However, to protect your wealth against future depressions in the market, it’s best to diversify some of your investments in ways that aren’t as susceptible to the whims of Wall Street.
The Money of the Future: Cryptocurrency
Cryptocurrency became all the rage for investors in the last couple of years. While the concept has existed for almost two decades, the skyrocketing value of the most popular cryptocurrency Bitcoin made it a mainstream investment vehicle toward the end of 2017.
Cryptocurrency has a few great benefits if you’re looking to protect some of your wealth from Wall Street recessions. Firstly, it’s a worldwide currency, so you’ll be able to exchange it for goods in virtually any country without the hassle of selling off stocks.
Secondly, since it’s used worldwide, its value isn’t tied solely to the performance of Wall Street. Its value is certainly volatile, but at least all of your money won’t be tied solely to the New York Stock Exchange, making it less susceptible to an American recession.
Investing in Tangible Wealth: Gold, Precious Metals, and Jewelry
Gold and other precious metals have been used as currency for millennia. Unlike American cash or stock options, the values of which are tied to Wall Street, precious metals are valued in virtually every nation and culture. If the American economy undergoes another big recession, your collection of gold and jewelry may hold its value much better than your Wall Street stock options.
If you want to diversify your wealth to shield it against a future recession, convert some of your cash into gold and other precious metals. That way, if the economy takes a downturn and you’re in a financial pinch, you won’t have to lose a substantial amount of wealth by selling off your stocks while they’re low. You’ll be able to liquidate some of your precious metal collection and ride out the storm until the market recovers.
The “Doomsday Prepper’s” Retirement Plan: Guns, Ammo, and Non-Perishable Food
If the economy ever takes a serious downturn like it did during the Great Depression, guns, ammunition, and non-perishable food will be three of the most valuable things throughout society until the market recovers.
For one, crime and theft tend to sharply rise during dire economic times. People throughout the nation will be willing to pay a premium price for firearms to protect their families and property. If you have a stockpile of guns and ammunition, you’ll be able to sell them for far more value than your initial investment.
The price of food also tends to skyrocket during economic depressions. People in rural communities will be willing to pay a premium price for ammunition so they can hunt for their own food. That also means non-perishable foods will be extremely valuable. Having a stockpile of guns, ammo, and food that doesn’t expire will allow you to keep your own family safe and fed while giving you yet another way to stay financially afloat.
In Conclusion: Diversity Is Key
Whether you’re investing in the stock market, traditional retirement plans, or alternative vehicles, the key to building a secure portfolio is diversification. As the old adage says, never put all of your eggs in one basket. Spread your wealth across a multitude of investment options so that you’ll be prepared for whatever direction the economy goes.