Maintaining Financial Stability in Economic Uncertainty
The recession (meltdown) of 2008, was a big wake-up call for everyone. Fortunately, the collective anxiety that we experienced being on the brink of another Great Depression has passed, and the world’s economy has recovered over the past 8 years.
But we shouldn’t forget the lessons that recent history has taught us. The International Monetary Fund recently warned in their annual financial stability report of another financial crisis, saying that urgent action would be required to stabilize Eurozone banks.
But what can be done by the regular citizens of the world who aren’t necessarily involved in international banking?
Here are some things that can be done to weather a potential financial storm.
Have an emergency fund at your fingertips. An emergency fund is cash that you’ve saved up for the sole purpose of helping you maintain your financial obligations through emergencies that life deals out.
Get out of debt
Getting out of debt is a good idea, whether there is a financial crisis on the way or not. The average American household carries over $15,000 in credit card debt alone. Not to mention mortgages, student loans, auto loans, or other debt.
Don’t be tricked by the “call of the wild” which promises unreasonable returns. Now is not the time to gamble your finances away. A sensible middle ground of investing is the way to go -- investments that are based on real value and pay dividends and interest.
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Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
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David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC
Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com