401k Retirement Plans--Planning for Turbulent Economic Times

During turbulent economic times, many 401k retirement plans experience problems. If you want to maintain your retirement funds even during tough economic times, there are some strategies that you can use. Here are a few things to consider about preparing your 401k for hard times.

Market Neutral Funds

One great way to protect your retirement funds is by investing in market neutral funds. Market neutral funds are mutual funds that aim to provide returns regardless of what is happening in the financial markets. They allow you to diversify your funds over a number of different investment strategies. These funds invest in things like real estate, foreign currencies and commodities. This can successfully provide you with a nice return on your investment even if the stock market is plummeting.

Bonds

You could also invest a portion of your retirement funds in bonds. Bonds provide you with a regular interest payment on a monthly basis. These payments do not depend on the stock market. As long as the company that issues a bond is still in business, you will be able to collect your monthly interest payment. This can provide you with a very safe and steady income stream for your retirement account.

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