{"id":47942,"date":"2023-01-28T14:13:01","date_gmt":"2023-01-28T14:13:01","guid":{"rendered":"http:\/\/www.brandon.ddtest.info\/multisite-test\/3-places-to-put-your-retirement-money-during-a-recession\/"},"modified":"2023-01-28T14:13:01","modified_gmt":"2023-01-28T14:13:01","slug":"3-places-to-put-your-retirement-money-during-a-recession","status":"publish","type":"post","link":"http:\/\/www.brandon.ddtest.info\/multisite-test\/3-places-to-put-your-retirement-money-during-a-recession\/","title":{"rendered":"3 Places to Put Your Retirement Money During a Recession"},"content":{"rendered":"<p> \n<\/p>\n<div>\n<p class=\"headline-regular financial-disclaimer\">Insider&#8217;s experts choose the best products and services to help make smart decisions with your money (<a href=\"https:\/\/www.businessinsider.com\/personal-finance\/personal-finance-editorial-standards\" class=\"not-content-link\" target=\"_blank\" data-analytics-module=\"body_link\" rel=\"noopener\">here\u2019s how<\/a>). In some cases, we receive a commission from <a href=\"https:\/\/www.businessinsider.com\/personal-finance\/our-partners\" class=\"not-content-link\" target=\"_blank\" data-analytics-module=\"body_link\" rel=\"noopener\">our partners<\/a>, however, our opinions are our own. Terms apply to offers listed on this page.<\/p>\n<ul class=\"summary-list\">\n<li>Some economists have warned that a recession is likely in 2023, which means it might be more difficult to retire next year.<\/li>\n<li>If you&#8217;re worried about market volatility, financial planner Alex Alba recommends moving your money out of the stock market.<\/li>\n<li>Put one to five years worth of expenses in a CD or high-yield savings account instead.<\/li>\n<\/ul>\n<div class=\"inline-newsletter-signup&#10;                        headline-regular loading\" id=\"formContainer\" data-component-type=\"inline-newsletter-module\" data-event-label=\"personal_finance\" data-newsletter-id=\"7\" data-list=\"Personal Finance\" data-acq-source=\"personalfinanceverticalinline\">\n<section class=\"inline-newsletter-content\">\n<div class=\"js-loader hidden\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"svg-icon \" version=\"1.1\" role=\"img\" width=\"50\" height=\"50\" viewbox=\"0 0 50 50\" style=\"enable-background:new 0 0 50 50;\" xml:space=\"preserve\">\n                        <title>Loading<\/title>\n                        <desc>Something is loading.<\/desc>\n                        <path fill=\"#111\" d=\"M43.935,25.145c0-10.318-8.364-18.683-18.683-18.683c-10.318,0-18.683,8.365-18.683,18.683h4.068c0-8.071,6.543-14.615,14.615-14.615c8.072,0,14.615,6.543,14.615,14.615H43.935z\">\n                          <animatetransform attributetype=\"xml\" attributename=\"transform\" type=\"rotate\" from=\"0 25 25\" to=\"360 25 25\" dur=\"0.6s\" repeatcount=\"indefinite\"\/>\n                        <\/path>\n                      <\/svg><\/div>\n<div class=\"success-container__mobile d-none\">\n<p>Thanks for signing up!<\/p>\n<p>\n                            Access your favorite topics in a personalized feed while you&#8217;re on the go.<br \/>\n                            <button class=\"rounded-button headline-bold white-button download\" type=\"white\"><br \/>\n                              download the app<br \/>\n                            <\/button>      <\/p>\n<\/p><\/div>\n<\/section><\/div>\n<p>Concerns about inflation, anxiety over a possible recession, and volatility in the stock market are prompting many Americans to push back their retirement plans. A Nationwide Retirement Institute <a href=\"https:\/\/news.nationwide.com\/download\/1245328\/nationwideinplansurvey2022pnm-19694ao.pdf\" target=\"_blank\" rel=\"noopener nofollow\" data-analytics-module=\"body_link\">survey<\/a> in August found that 40% of workers age 45 or older have done so.<\/p>\n<p>Financial planner Alex Alba of <a href=\"https:\/\/www.meritfinancialadvisors.com\/\" target=\"_blank\" rel=\"noopener nofollow\" data-analytics-module=\"body_link\">Merit Financial Advisors<\/a> tells Insider that many of his clients planning for retirement are struggling with this right now.<\/p>\n<p>&#8220;One of my clients who was <a href=\"https:\/\/www.businessinsider.com\/personal-finance\/retirement-planning\" target=\"_blank\" rel=\"noopener\" data-analytics-module=\"body_link\">planning on retiring<\/a> in 2023 says, &#8216;I think my pension&#8217;s going to be affected. I don&#8217;t know what to do,'&#8221; Alba says. &#8220;So we ran pension estimates, and we asked him, &#8216;What are you spending right now? And what do you plan to spend in retirement?'&#8221;<\/p>\n<p>In the current environment, after calculating your annual expenses during retirement, Alba recommends reallocating one to five years worth of investments in cash assets if you&#8217;re risk-averse. For example, if you take out $250,000 for your first five years of retirement starting in 2023, Alba suggests putting $50,000 in a regular checking or savings account first.<\/p>\n<p>The remaining amount can be split up in these three places, if you&#8217;re worried about a recession that could cause big swings in the stock market.<\/p>\n<h2>1. Certificate of deposit (CD)<\/h2>\n<p>&#8220;I would utilize CDs to put some of your cash to work if you&#8217;re afraid of that market volatility,&#8221; says Alba.<\/p>\n<p>A <a href=\"https:\/\/www.businessinsider.com\/personal-finance\/certificate-of-deposit\" target=\"_blank\" rel=\"noopener\" data-analytics-module=\"body_link\">certificate of deposit<\/a> (CD) is a type of deposit account that offers a fixed interest rate if you keep the money in your account for a set amount of time, ranging anywhere from a few months to five years, or more. Longer CD term agreements typically offer higher interest rates.<\/p>\n<p>The fixed interest rate of a CD might give a risk-averse investor more peace of mind, especially since economists are predicting that <a href=\"https:\/\/www.businessinsider.com\/stock-market-crash-wall-street-2023-us-economy-avoids-recession-2022-11\" target=\"_blank\" rel=\"noopener\" data-analytics-module=\"body_link\">the stock market might become more volatile<\/a> in 2023.<\/p>\n<h2>2. Bonds<\/h2>\n<p>Alba recommends diversifying your cash assets to ensure the highest yield possible in retirement. A bond is a loan you make to the company in exchange for fixed income from interest over a fixed period of time. Bonds typically offer lower returns than other investments. Alba adds, &#8220;We&#8217;ve had a terrible bond year, but fixed income from bonds will come back eventually.&#8221;<\/p>\n<p>I bonds, issued by the US Department of Treasury, are one of the most common kind of bonds. As of late January 2023, <a href=\"https:\/\/www.businessinsider.com\/personal-finance\/what-are-i-bonds\" data-analytics-module=\"body_link\" rel=\"\">I bonds<\/a> offered an <a href=\"https:\/\/www.treasurydirect.gov\/savings-bonds\/i-bonds\/i-bonds-interest-rates\/\" target=\"_blank\" rel=\"noopener\" data-analytics-module=\"body_link\">interest rate of 6.89%<\/a>. You can buy up to $10,000 worth of electronic I bonds and $5,000 in paper I bonds in one calendar year. You can redeem your I bond after 12 months, but if you cash in the bond in less than five years, you lose the last three months of interest.\u00a0<\/p>\n<p>Compared to the stock market, Alba says: &#8220;I do see fixed-income bonds being a good investment, but you will not experience the same volatility like you would in an equity-based portfolio.&#8221;\u00a0<\/p>\n<h2>3. High-yield savings account<\/h2>\n<p>Alba&#8217;s next recommendation is to move some of your retirement nest egg into a <a href=\"https:\/\/www.businessinsider.com\/personal-finance\/best-high-yield-savings-accounts-rates-right-now\" data-analytics-module=\"body_link\" rel=\"\">high-yield savings account<\/a>.<\/p>\n<p>Some high-yield savings accounts offer interest rates exceeding 3%, much more than regular <a href=\"https:\/\/www.businessinsider.com\/personal-finance\/what-are-the-best-savings-accounts-right-now\" target=\"_blank\" rel=\"noopener\" data-analytics-module=\"body_link\">savings accounts<\/a> that typically only offers an APY around 0.16%. Instead of keeping your money in a retirement account, which could decrease in value as we experience more stock market volatility, putting it in a high-yield savings account with a positive interest rate will guarantee that your money grows.<\/p>\n<p>It&#8217;s important to note that interest rates on high-yield savings accounts might vary slightly from month to month. However, money kept in high-yield savings accounts isn&#8217;t going to decrease in value the same way that money in the stock market might during volatile periods.<\/p>\n<p>&#8220;Obviously, you want to make sure you have your emergency savings fund first,&#8221; Alba says. &#8220;I would make sure you&#8217;re comfortable in your current situation, paying bills, <a href=\"https:\/\/www.businessinsider.com\/personal-finance\/realistic-debt-payoff-plan-budget-cuts-nika-booth-2022-8\" target=\"_blank\" rel=\"noopener\" data-analytics-module=\"body_link\">credit card debt<\/a>, and all that good stuff first. Ultimately, you&#8217;d have to double-check your retirement plan with a financial professional to use cash in a smart way.&#8221;<\/p>\n<p>    <iframe src=\"https:\/\/products.gobankingrates.com\/pub\/bcf1f183-92e6-4401-ac5f-d7b47ca8c33c?resize=1&amp;ident=99\" data-ident=\"99\" scrolling=\"no\" frameborder=\"0\" width=\"100%\" style=\"min-width:300px;max-width:595px;max-height:475px;\"><br \/>\n                          <\/iframe><\/p>\n<section class=\"post-authors\" data-component-type=\"post-author\">\n<\/section><\/div>\n\n<br \/><a href=\"https:\/\/news.google.com\/__i\/rss\/rd\/articles\/CBMiZGh0dHBzOi8vd3d3LmJ1c2luZXNzaW5zaWRlci5jb20vcGVyc29uYWwtZmluYW5jZS93aGVyZS1rZWVwLXJldGlyZW1lbnQtbW9uZXktZHVyaW5nLXJlY2Vzc2lvbi0yMDIzLTHSAQA?oc=5\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Insider&#8217;s experts choose the best products and services to help make smart decisions with your money (here\u2019s how). In some cases, we receive a commission from our partners, however, our opinions are our own. Terms apply to offers listed on this page. Some economists have warned that a recession is likely in 2023, which means &hellip;<\/p>\n","protected":false},"author":1,"featured_media":47943,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[161],"tags":[],"_links":{"self":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/posts\/47942"}],"collection":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/comments?post=47942"}],"version-history":[{"count":0,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/posts\/47942\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/media\/47943"}],"wp:attachment":[{"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/media?parent=47942"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/categories?post=47942"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.brandon.ddtest.info\/multisite-test\/wp-json\/wp\/v2\/tags?post=47942"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}