EBONY HAZELEGER: Are you prepared for the next stock market crash?

The U.S. Stock Market has been on an upswing for the past 9 1/2 years, and it’s great to see your earnings gain well on paper. But, unfortunately, experts say this is not going to last long. Will the stock market boom continue?

Experts are saying that the bear market is coming. If inflation (rising price of goods and services) begins to heat up drastically, The Federal Reserve (the nation’s central bank) could choose to get more aggressive in maximizing short-term interest rates between banks. What does that mean? Interest rates for variable rate loans and mortgages would be expected to rise. And, as a result, our country’s economic growth could increase delinquency rates tied to variable rate loans.

So maybe you are thinking that you should stay the course and keep your investments in place. Or perhaps you are wondering what is right for you. Or you’re probably wondering what you should do the next time the bear market comes back. Or perhaps you need advice on what “not” to do next when the market becomes volatile as it did during the recession that kicked in in 2008. What if you get cold feet and want to pull out?

We will never really know when the next stock market disaster is coming or how scary it will be. But it’s very important to adopt a more cautious attitude now about your stocks, prepare for the worst, and be wary of the current bull market. Why? Because a recession is possible in 2019, and it’s sparking new worries. While there’s no guarantee that this bull market will crash before it passes its 10th anniversary in early 2019, we do know that historically the longest-running bull markets generally do not promise any investor any sense of security. So how should you keep investments safe?

Consider The Tax-Free Diversification Method

The stock market continues to fluctuate from time to time, so it’s important to have nerves of steel when dealing with the crisis. If we experience a stock market crash soon, investors will start selling their stocks to the point where shares will be picked up at a discount. It’s important to have a well-diversified portfolio so certain assets can perform well. If you want to keep a portion or all of your money safe, and if you are tired of losing money, then put some of your investments away in a tax-free investment vehicle. These types of vehicles take advantage of the upside of the stock market but never experience the downside. Plus, you can keep it legally “hidden” from the government.

Create An Emergency Fund

It’s important to keep some of your money safe and sound so that if the market slumps, money is accessible. Doing so will also help you plan for bigger emergencies like job loss or disability. Creating an emergency fund also gives you a greater sense of security, and you have other money that will serve a backup plan.

Know And Understand What Types of Investments You Own

You cannot invest in the stock market without understanding how mutual funds, ETFs, or other investments work. Do your research on the strength and weaknesses of your investments and constantly ask your financial advisor questions and sort out your allocations now. If you prepare ahead of time, you’ll react better to changes in market events.

Get A Second Opinion

A second opinion can benefit a confident saver-investor. In fact, it’s not uncommon for financial planners to have their own financial planner on their personal payroll. If you need a second opinion about your investments, need help getting your finances in shape, want an alternative in keeping your money safe, and want to find out more about tax-free investments, then give my office a call today and visit my website at www.homeplanadvisors.com.

Ebony Hazeleger is the owner and creator of Home Plan Advisors, which specializes in helping families become debt-free, maximize savings for college expenses and retirement, and establish emergency funds while minimizing risk and income taxes based on her smart money management system. For more information, call (866) 248-1871 or visit www.homeplanadvisors.com.