Protect Savings From a Market Crash

You saved for years. Then the market drops and your balance falls. You do not have to just watch it happen. Here are five steps that can help.

1. Look at a fixed indexed annuity

This is a contract built to protect the money you put in from market losses. It still gives a chance to earn interest linked to an index. Caps and fees apply, and it is an insurance contract, not a bank deposit.

2. Spread your money out

Do not keep it all in one place. Some in savings, some in safer tools, some for growth. If one part drops, the others may hold.

3. Keep cash for the near term

Keep about 6 to 12 months of expenses in cash. Then a market drop does not force you to sell at a low point.

4. Know your real risk

Ask how much of your money could fall in a bad year. Many people are surprised. Once you know the number you can decide what to change.

5. Work with a professional

A licensed professional can help you build a plan and stay steady when the market gets scary. Richelle has done this work since 1992.