This is the second of a series of videos in which I tackle the difficult question of where to invest money in a recession. In the first video I laid out the basic strategy for when you need to keep money on hand in case of emergencies. During a crisis sometimes the worst emergencies happen. It could be losing a job or making fewer sales when you run a business.
In this video I explain which investments you might want to avoid in your “on-hand” portfolio or “emergency fund“. And which investments you probably want to include. An “on-hand” portfolio contains investments that you may need immediate access to. This is my opinion on the best way to invest your emergency fund.
The last thing you want is for your money to be tied up in a rental properties when you need to pay your own mortgage! Or perhaps its something for the kids! Buying rental properties can provide a fairly good income but one property can make up a huge portion of your wealth. It can be difficult to get hold of cash quickly.
Or maybe you invest in stocks! They could be the most liquid stocks but if the market takes a dive right when you need access to your money, this could be catastrophic! Sometimes all you need is liquid cash.
So where do you invest your emergency fund? I talk about liquid cash – I keep a good portion of my “on-hand” portfolio in cash. Learn about gold investment! This is a critical part of my “on-hand” portfolio. But is gold a good investment?
I discuss how CDs or Certificates of Deposits can help offset inflation. Inflation is a great destroyer of wealth but is difficult to avoid in an “on-hand” portfolio.
Finally I talk about government bonds. Are they right for you?
In this series of videos I am explaining a set of basic principles that the beginner can use to develop his own investment strategy. These are the principles devised by professional investors over decades and stand the test of time. So make sure you watch all of the videos. By the time you get to the end you will have in place a strategy that gives you the confidence to go out and meet your goals!
Don’t let the recession stop you from investing. Know where to invest in a lockdown. Know where to invest money in a recession. We cannot afford to let these crises stop us from achieving our life goals.
Disclaimer: The opinions expressed in this video are for information purposes only and should not be construed as a recommendation or advice that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person
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