Learn how to protect yourself before the next stock market crash. Experts say another crash is hitting in 2016.

Here are 5 ways you can prepare for the next stock market crash, which experts say is likely to happen in 2016. Forbes, the New York Times, and many financial publications are screaming at investors to prep for the next recession. Too many families lost their nest eggs. We don’t want that to happen to you, so we’ve comprised 5 tips that will help you prepare for the next downturn.

1. Become a Prepper

You could spend all of your time and money building foxholes, storing rice, and learning to can your home grown vegetables, but that’s not the kind of “prepping” we’re talking about. Prepare for the unexpected by establishing an emergency fund with 3-6 months of your average living expenses. Put this money in a quick-access account like a savings or money market account. We suggest a money market account which offers a higher return than a traditional saving account. Investments are key as well, but we’ll get to that shortly. For now, buy yourself a little peace of mind by keeping a healthy hunk of change around for emergencies.

2. Educate Yourself

Know the terms. Just like most things in life, you’ll have more success reaping the benefits of an investment when you have a basic understanding of the nomenclature. If you know the difference between stocks, bonds, mutual funds, and inventing in precious metals, you’ll be more confident in your portfolio when the market flexes.

3. Know Your Risk Level

Know the risk level you’re willing to take. Determine when you want to invest and about how long you want to stay in the market. This will help determine where to put your cash. For example, a high-risk investment would stand to yield a higher rate of return; conversely, you could expect a lower risk investment to yield a lower rate of return.

 

4. Diversify

We’ve all heard the real estate mantra “Location. Location. Location.” In order to have a thriving company, property selection is key. The same is true for investments: if you want to have the best chance at constant returns, “Diversify. Diversify. Diversify”. Traditionally, the stock market and the gold market have had an inverse relationship, which means as one goes up in value the other goes down.

This chart indicates that very relationship and shows that gold returned a much higher percentage than stocks from 2005 – 2013. According to the DailyFinance, “you could have avoided a total meltdown in your portfolio in 2008 had gold comprised part of your portfolio”.

 

5. Choose Wisely

Research several companies before handing them the keys to your cash box. When you’re deciding where to invest your money, you want an experienced, professional, and trustworthy confidant. Look for someone that has a teacher’s mindset: do they answer your questions, treat you with respect, explain things in plain terms or in formal investment jargon? For example, our principles at Landmark Capital are to help educate, facilitate, and find the best value for our clients. Find a company with whom your values align and whom has a track record at winning in the industry.

Preparedness is key

We’re living in risky financial times. One day the stocks are up, up, up, and the next 8 years leave us frantic to repair our investment portfolios. Landmark Capital takes pride in educating and advising our clients in the right precious metal investments so that they are prepared for the inevitable burst of the stock market.