3 ways to prepare bear market

The possibility of a bear market that everyone talks, but few people are interested in doing anything.

Although the kind of national and global uncertainty on Wall Street tradition of contempt, this round of the bull market continue to charge together. Investors do not want to leave too early and risk missing more gains. Some people become more aggressive in the past year.

Nevertheless, there is always trivial knowledge goes up must come down …… make people worry.

 My favorite quotes is investor Warren Buffett should be “fear when others are greedy and greedy when others are fearful.” But what is to be in a fear and greed everyone else does?

 Here are some ways to protect your network elements before the next regressed egg recession soon.

1. Develop income plan.

If you are in or near retirement, you know what your source of income is that when you click on them? Most retirees rely on three or four basic sources of income: Social Security, pensions and / or tax-deferred retirement account, maybe some personal savings. If you do not have a pension or guaranteed income will not be enough to pay for your basic needs, you might want to see if there is an annuity to create your own income protection plan.

Annuity guarantee, as they are by the insurance company’s financial strength as backing. If all or most of retirement and personal savings are dependent on the market, want to put aside cash value income or vERY years of stable investment. As a result, you can ride out the rough years.

2. Plan your investments properly.

This is awesome, but not devastating, if the market dips, but you still working. You still have your salary to count, you still put money into your retirement account, you have plenty of time to recover. As you approach retirement, or, which is more than a little scary. Your recovery window is small – but not non-existent. 67 If you retire, you may still need money 15 or 20 years. If you have left over once you’ve covered your basic income needs funds, it can invest more aggressively for those old age – but you should have a long-term vision to do it.

talk about financial advisors you risk toleranceForce, and know yourself: If you can not handle a bear market on emotional or economic, it is best to stick to more conservative retirement investments.

3. Know your risk.

We often have something, there really hurt our low probability of irrational fear. When we swim in the ocean, for example, we fear sharks – even though shark attacks only require a yearly average American life. The average American lives annually cows claim 20 points, but most people do not be afraid to go to a farm. If you lose the bear market may occur in your nest egg sleep what to see if your concern is necessary. Financial advisers can stress test your portfolio, and how it during the tech bubble or the mortgage crisis in 2000 will be held in 2008, he or she can also tell you how long it takes from a similar recession recovery.

Investors always want to know what will happen when a bear market. The answer is nobody knows.

You can accurately predict what some, though, is how much money you will need in retirement, when you need it. A comprehensive retirement plan can help you make the most of what you have – equally important – to help you prepare for the worst.