The global economy hit a major speed bump this year. COVID-19 caused the global markets to take a nosedive, leaving many wondering how (or if) they could recover their retirement savings and investments. While the markets have partially recovered, there's still a long way to go. Thankfully, there are still ways to see great returns on your investments in 2020. So, let's take a look at a few of the best ways to weather the storm and still come out with high earnings!
Don't Panic
This is by far the best advice that any investor can get. Investing your money always involves a certain degree of risk. Even putting your money in a savings account could prove risky if the global economy completely collapsed, however unlikely that may be. In any case, investing in stocks, bonds, real estate, or business all force you to take on varying degrees of risk.
If something happens and you lose a significant portion of your initial investment, do not panic. Don't pull out all of your funds and refuse to invest again. Instead, evaluate the situation and wait. See how you could alter your approach to get some or all of your money back. More often than not, you'll find a plan that will help get your investments back on track. Panicking just leads to bad decision-making, which will cause you to lose more money in the long run.
Take Care of Your Health
You're probably wondering why your health has anything to do with getting good returns on your investments. It's not that going to see the doctor will increase the value of your investments, but it could give you more cash flow over the long-term. It's why people say that "prevention is better than cure."
For example, let's say that you're starting to feel some pain in your knees. The pain isn't severe and doesn't prevent you from completing daily tasks, but it is bothersome and you worry that it could get worse. Rather than waiting until you need invasive surgery or a complete knee replacement, consider talking to your doctor about stem cell therapy for knees. It could give you more pain-free years and save you thousands of dollars on costly treatment plans. This way, you have more money to put toward your investments and retirement savings!
Diversify, Diversify, Diversify
A lot of financial advisors tell their clients to diversify, then their clients make a few changes to their stock portfolio and assume they're done. However, this isn't true diversification. Diversification doesn't just mean rebalancing your stocks and bonds; it means investing in different asset classes to mitigate risk as much as possible.
For example, many people invest in real estate. This can have multiple benefits, as you can use real estate as a place to live, operate a business, or rent out to have a regular cash flow. However, real estate isn't your only option. You can invest directly in a business, cryptocurrencies, art, or dozens of other asset classes to help diversify your portfolio!
