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IRA Financial Blog

Coronavirus – Will it Affect Your Retirement? – Episode 214


IRA Financial’s Adam Bergman discusses the coronavirus and the impact it is having on the global economy and how it may impact your retirement savings.

In his latest podcast, Mr. Bergman discusses the coronavirus and how to protect your retirement funds. Like previous epidemics, the coronavirus is impacting economies around the world. The Dow Jones, S&P 500 and NASDAQ all fell more than 1.5% on Friday, January 31, 2020. While stocks have risen because of the Iowa caucuses, there’s still a real fear that equities will fall further thanks to the virus. The easiest way to keep your finances healthy is to look to alternative investments.

What is the Coronavirus?

Coronaviruses are “a large family of viruses that cause illness ranging from the common cold to more severe diseases (such as SARS),” according to the World Health Organization. The latest strain originated in China, but has spread throughout the world, including the United States. Hundreds have died and thousands more have contracted it. Everyone needs to take measures to protect themselves.

Of course, the elderly and those with medical conditions, such as heart disease, are most vulnerable to the coronavirus. A few tips to keep you safe from the virus:

  • Always wash your hands and use hand sanitizer
  • Cough and sneeze into your arm, not your hands
  • Wear a mask to avoid breathing in particles from the sick
  • Keep a comfortable distance (about three feet) from someone who is sick

It’s important to see a doctor the first sign of a cold. The sooner you are on the medication, the better. Getting a flu shot might not prevent the illness, but it shouldn’t hurt either! Lastly, if you’ve been to the Far East, it’s good practice to be proactive when it comes to your well-being.

How Will it Affect My Retirement?

Across the globe, so many factors are involved with every county’s economy. These can range from one country’s economy, a deadly outbreak, trade wars and other political unrest. Here in the United States, your first sign of economic turmoil is usually a dip in the markets. When the markets start to slide, it’s the investors who take the biggest hit. If your retirement money is invested solely in stocks and bonds, you can be in for a rude awakening when you get your next 401(k) or IRA statement.

Yes, the Stock Market is seeing record highs. However, we all know that will not last. Right now, you have the coronavirus. 2020, of course, is an election year. Non one can say for sure what will happen if the current president is re-elected or a Democrat takes over the Oval Office. No matter the reason, it’s good practice to have “retirement portfolio diversity.”

What Can You Do?

Let’s preface this by saying we’re not telling you to get out of the markets completely. We are telling you there are alternatives, especially during times of global unrest, such as the coronavirus. By self-directing your retirement plan, you can invest in just about anything. Real Estate and precious metals continue to be the most popular alternative investments.

What’s good about alternatives is that they tend to rise when the markets drop. Because of the trade war with China, and presumably with the coronavirus, precious metals rose a good amount, particularly gold. Real Estate will always be popular, even after the housing crash over a decade ago. Everyone needs a place to live and work after all!

A Self-Directed IRA is the best plan to invest in alternatives. The only thing you need is the right custodian. Many banks and online custodians do not allow you to invest in alternative assets. When you work with IRA Financial, you can invest in anything you wish, so long as it’s not prohibited by the IRS.

Listen to the podcast as Mr. Bergman explains the benefits of the Self-Directed IRA, including alternative asset investing, tax deferral and compounding returns.

Coronavirus – Keep Yourself and Investments Safe

In conclusion, we want everyone reading, listening to and watching this podcast to be safe from the coronavirus. Obviously, health is the biggest concern. However, your financial health shouldn’t be ignored either! Look at ways to help diversify your holdings, especially alternative investments.

Let’s hope this coronavirus epidemic can be eradicated quickly. Thanks for listening, and be sure to check out our SoundCloud page for more podcasts.


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