For federal workers, the focus for many weeks has been the end to a bull market that has broken records. By now, we all know there’s a correction coming, and experts are predicting a drop of up to 30% in the stock market. Although we can all see it coming, many are confused as to what to do, and this is a question we wish to answer today!
Above all else, we recommend moving your retirement nest from its current location. If left alone, the drop in the stock market will impact you directly. If you have money in a C, S, or I fund, you’ll need to move them to somewhere more reliable. Where is this magical place promising to protect your investment? Well, many believe in precious metals.
Over the course of history, gold is notorious for retaining value despite (and even in spite) of what is happening in the economy. Elsewhere, many are choosing silver and various other precious metals. These days, there are a number of ways to invest in metals whether you actually want to own the gold/silver or you want the company to hold the physical metals while you own a certificate stating what you own. For those in Denver, Boston, or New York, the opportunities to actually get ingots in hand are increasing.
As we stand, losses are only a matter of time and rumors continue to swirl about Wall Street investors who are warning important customers about the seemingly inevitable downturn. However, finance experts have also been warning about from where we all receive our information. As well as warnings coming from investors and reliable sources, there are also pieces of ‘advice’ coming from people just trying to make some money. For those in a TSP, for example, they need to be very careful before risking their future.
Rather than removing your money from a TSP permanently, their Lifecycle funds could be a better idea because they’re designed to optimize the balance between risk and return. As opposed to lumping everything into gold, these self-adjusting accounts may be a stronger option.
As a general rule, if something looks too good to be true, it most likely is. Never risk the financial future of yourself and your family for a short-term ‘solution!’