Whether you’re looking for ways to withdraw money from your savings without further depleting a stock mutual fund, or you’re looking for new ways to unleash some much-needed income, these tips can help your portfolio recover more quickly from the stab at hand. received the bull market in March.
Spend Less
You have already heard this advice many times from those who recommend you save. But it’s much easier to follow that advice in our new world of staying home.
After all, if you’re holed up at home, you’re not spending money on dinner or cocktails in the evening or on tickets to sporting events or concerts. Gas prices are low and you’re not filling up as often. Every dollar you don’t spend is a dollar that can be used for other things.
Use Economic Relief For COVID-19
We recommend that if you receive a 15% auto insurance reimbursement due to fewer accidents, reduce your 401(k) or retirement plan withdrawals by that amount. Similarly, if you receive a coronavirus relief check, reduce what you withdraw by that amount.
Going For Gold
One asset class that has been rising in value during these turbulent times is gold. The yellow metal has lived up to its reputation as a safe option during a crisis. The value of an ounce of gold rose from $1,525 at the beginning of the year to more than $1,700. That gain of about 12% is better than the 12% decline suffered by the S&P 500 stock index.
The same goes for silver, which sells for around $15 an ounce, though it’s down nearly $2 since the year began. If it doesn’t bring you joy, let it bring you money. To make sure you get the best price for your gold or silver, get a couple of quotes from reputable dealers.
Finance Big Purchases That Can’t Wait
Let’s say your car’s refrigerator or transmission breaks down. In a normal situation, you would pay for the replacement of major appliances or car repairs with cash. However, doing so now will deprive you of the money you need for other things.
One solution you might consider is taking advantage of lower borrowing costs or an interest-free credit card offer, warning that “that can buy you time.” Waller notes that financial markets tend to post positive returns six to twelve months after the low point during a major correction.
Bottom Line: This may be the right time to convert that gold watch to dollars, says Ogorek. “Gold prices have risen. If you have physical gold in jewelry or coins, this may be a good time to redeem it.” Sure, you’re not going to get rid of pieces that have a lot of sentimental value, but if you have gold pieces you don’t want, consider getting some money for them.
