weekly blog--one for the ages
Most baby boomers share a fear of outliving their savings. With a recession looming, baby boomers who once assumed they could tolerate risk are being put to the test amid an alarming spate of warning signs: battered stock prices, plunging yields in long-term bonds, worsening US-China trade tensions, slowing economies in Europe and Asia, and political instability.
During a recession, financial experts say it’s best not to completely steer clear of the stock market. If you want to help insulate yourself during a recession, consider investing in healthcare, utilities and consumer goods sectors where people are likely to still spend money. Another approach--investing in dividend stocks. The experts recommend finding companies with low debt-to-equity ratios and strong balance sheets, or companies that have increased their dividend payouts for at least 25 consecutive years.
If you think the market is still too volatile, consider purchasing real estate and then renting to reliable tenants, or investing in precious metals like gold and silver.
Another alternative is moving to another city or town to create a more relaxed, stress-free lifestyle. This is especially advantageous if you live somewhere with a high cost of living, you live in an area with high income or property taxes, you live in a state that taxes social security, or you live in a place where you absolutely need a car.