5 Sensible Steps to Protect Your Money in a Year That Promises More Economic Chaos

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Man putting money in a piggy bank
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With the highest inflation in decades, a bear stock market, and fears of recession, the New Year promises to bring more economic chaos, write Imani Moise, Joe Pinsker, Ashlea Ebeling, Veronica Dagher, and Anne Tergesen for The Wall Street Journal.

Luckily, there are some simple steps you can take to protect your money and prepare yourself for any further economic uncertainty.

You can earn more on your savings by moving your cash from a typical savings account in one of the five largest U.S. banks into higher-yielding accounts at other banks. For example, some online-only accounts pay rates of approximately four percent.

Additionally, if you are willing to sacrifice some liquidity, one of the best options is inflation-adjusted I Bonds which must be held for at least a year but are currently paying 6.89 percent. Treasury securities are also a good choice.

You should also start shopping around to ensure you are still getting the best deal from your bank on your checking and savings accounts, especially if you are paying ATM or monthly maintenance fees. Customers with a low balance in their checking account could find it beneficial to choose accounts with an extended overdraft grace period, while those with more than $250,000 may benefit from opting for a brokerage that can offer more insurance coverage.

Fred Hubler, Chief Wealth Strategist for Creative Capital Wealth Management Group, which offers retainer-based advice and access to accredited investments, said, “both stocks and bonds have had a great run up, longer than normal, higher than average, and I don’t think anyone smart believed that would continue indefinitely.”

“Our firm has focused on alternative strategies to stocks and bonds,” Hubler continued, “so when both stocks and bonds are heading the opposite direction having alternative allocations to your portfolio can make a big difference to the overall performance.”

Ultimately, there is no quick fix for you during an economy in flux. For many, times like this are a moment to realize the big-picture financial strategies that they should be making a part of their life even when things return to normal.

The start of a new year is a great time to cancel unused memberships to save a few more bucks on monthly bases. It is easy to forget about recurring charges which can add up to hundreds of dollars.

Meanwhile, those recurring bills you cannot cancel, you may be able to renegotiate. For instance, you might get a better deal from your cable company or wireless provider since it will cost them more to acquire a new customer than to keep an existing one.

Read more about ways to protect your money amidst economic chaos in The Wall Street Journal.

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Want to know if you’re on the right path financially? CCWMG’S Second Opinion Service (SOS) is a no-obligation review with one of  Creative Capital Wealth Management Group‘s Wealth Strategists. 

It’s simply not possible to get a reliable second opinion from the same person who gave you the first one. Click here to schedule an SOS meeting with Fred and his team.

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