Investment accounts are among the best ways to plan for retirement. Not only do they help you save money, but they also generate returns, which means you can grow your wealth without too much time and effort on your part.
However, the whims of the market can determine how successful your investments are, which means massive market downturns (such as the 2008 recession) can take a major toll on your retirement savings.
Here are the 12 best ways to make sure you’ll have the money you need to retire comfortably.
Eliminate your late tax debt
Each year, the IRS forgives millions in unpaid taxes. If you have more than $10,000 in tax debt, or have 3+ years of unfiled taxes, you could get forgiveness too. You might be eligible to lower the amount you owe, or eliminate your tax debt completely.
Easy Tax Relief could help you lower or get out of your tax debt for good. They’re well respected in the industry and have been recognized for their ethical standards when dealing with tax debt. While most tax companies just put you on a payment plan and file your taxes for you, Easy Tax Relief talks to the IRS directly. They can help you pay off your tax debt faster while potentially reducing what you owe.
Important: Not everyone will qualify. To take advantage of this special program you must owe more than $10,000 in past-due taxes.
Fill out this form to get started
Consider dividend-yielding stocks
![attractive business woman smiling while standing outdoor flaunting dollars in hand](https://cdn.financebuzz.com/filters:quality(75)/images/2023/05/18/attractive-woman-smiling-while-flaunting-us-dollars.jpeg)
Although companies might cut dividend payments during an economic downturn, you can hypothetically rely (at least in part) on the passive income you gain from dividend-yielding stocks while you wait for the rest of your investments to bounce back.
Diversify, diversify, diversify
![man wearing suit holding graphs showing concept of digital financing](https://cdn.financebuzz.com/filters:quality(75)/images/2023/05/18/man-holding-graph-showing-concept-of-digital-finance.jpeg)
If there’s a golden rule of investing, it’s this: You need a diversified portfolio. If you put all your investment eggs in one basket (meaning one type of investment or one sector of the economy), you could lose your profits quickly if that investment or sector runs into trouble.
But with a diversified portfolio, you’ll have a variety of investments with different levels of risk, including bonds, domestic and international stocks, long-term and short-term investments, and real estate funds.
Even if one sector of the economy collapses, your investments in other sectors could help you maintain profitability and outlast market fluctuations.
Work with a financial advisor
![african american couple taking advice from female finance advisor](https://cdn.financebuzz.com/filters:quality(75)/images/2023/05/18/female-finance-advisor-talking-to-couple.jpeg)
If you’re worrying about the state of your savings (or even if you aren’t), it’s a good idea to meet with a retirement planner or financial advisor.
For one thing, it’s easy to be scared of things you don’t understand — so talking to someone who understands the market can put your mind at ease.
For another, a financial advisor can determine if you’re making the best investment choices for your age and financial goals, then help you adjust your portfolio accordingly.
Earn $200 cash rewards bonus with this incredible card
There's a credit card that's making waves with its amazing bonus and benefits. The Wells Fargo Active Cash® Card(Rates and fees) has no annual fee and you can earn $200 after spending $500 in purchases in the first 3 months.
The Active Cash Card puts cash back into your wallet. Cardholders can earn unlimited 2% cash rewards on purchases — easy! That's one of the best cash rewards options available.
This card also offers an intro APR of 0% for 15 months from account opening on purchases and qualifying balance transfers (then 20.24%, 25.24%, or 29.99% Variable). Which is great for someone who wants a break from high interest rates, while still earning rewards.
The best part? There's no annual fee.
Don’t take a lot of risks when the economy is unstable
![woman doing stock market research at night](https://cdn.financebuzz.com/filters:quality(75)/images/2023/05/18/woman-in-night-doing-stock-market-research.jpg)
There’s a time and a place for taking risks, and when the economy is in flux isn’t it. If you have a diversified portfolio, you won’t invest everything into the next disruptive idea, no matter how the economy is behaving.
But during a recession or a period of high inflation, it’s even more important to avoid dramatic, all-or-nothing investments.
Instead, focus on making stable investments with returns you can count on (for instance, investing in U.S. Treasury bonds).
Be smart about how much you withdraw
![senior couple sitting at home as counting money](https://cdn.financebuzz.com/filters:quality(75)/images/2023/05/18/senior-couple-counting-money-while-taking-notes.jpeg)
Common financial advice holds that you can withdraw 4% of your retirement savings in your first year of retirement, then continue to withdraw 4% each year while adjusting for inflation. However, 4% could be too high if the economy is in a tailspin.
You might want to withdraw closer to 3% or even lower, depending on what you can afford. Picking up a gig job, downsizing your home, and curtailing expenses can also help your retirement savings stretch further.
Reevaluate your investments once a year
![businessman wearing suit and glasses sitting at office reviewing documents in hand](https://cdn.financebuzz.com/filters:quality(75)/images/2023/05/18/business-man-reviewing-documents-at-work.jpeg)
Your investment portfolio shouldn’t remain static until retirement. Instead, it needs to change with you, especially as you get closer to retirement.
As a rule of thumb, you’ll want to check on your investments and rebalance them at least once a year.
Lock in today’s higher rates on government bonds
![cup with black coffee and pen placed over newspaper with bond yield charts](https://cdn.financebuzz.com/filters:quality(75)/images/2023/05/18/coffee-cup-and-pen-over-newspaper-with-bond-yields.jpeg)
U.S. Treasury bonds are among the safest types of investments, and getting a return is practically guaranteed since they are backed by the full faith and credit of the U.S.
Interest rates on Treasury bonds are near the highest they’ve been in over a decade due to the Federal Reserve hiking interest rates over the past year.
Make age-appropriate investments
![male broker looking at screen while reviewing stock graphs](https://cdn.financebuzz.com/filters:quality(75)/images/2023/05/18/male-broker-looking-at-screen-with-trading-charts.jpeg)
When you’ve just started working, you can tolerate a higher level of risk. So if the market goes south, you should still have decades to rebuild your investment savings.
But if you’re only a few years away from retiring, you probably won’t have time to regain money lost on a risky investment. A financial advisor can help you make age-appropriate investments that will pay off in time.
Work part-time to improve your cash flow
![woman using pen to show papers in front of smartphone while vlogging at work](https://cdn.financebuzz.com/filters:quality(75)/images/2023/05/18/woman-talking-to_audience-through-smartphone-while-vlogging.jpeg)
Whether you’re still part of the full-time workforce or have already retired, a side gig can give your budget an extra cushion to help you outlast any temporary market setbacks.
Plus, even if your investments are currently performing well, the income from a side gig can set your mind at ease and help you spend less time worrying about retirement.
A side gig could also fund a fun expense like a bucket-list vacation without requiring you to dip into your retirement funds during an economic downturn.
If you’re over 50, take advantage of massive discounts and financial resources
Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.
How to become a member today:
- Go here, select your free gift, and click “Join Today”
- Create your account (important!) by answering a few simple questions
- Start enjoying your discounts and perks!
You’ll also get insider info on social security, job listings, caregiving, and retirement planning. And you’ll get access to AARP’s Fraud Watch Network to help you protect your money, as well as tools to help you plan for retirement.
Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.
Avoid selling stocks that are down (when possible)
![businessman holding hands in terror while stressing about stock market charts](https://cdn.financebuzz.com/filters:quality(75)/images/2023/05/18/businessman-stressing-about-stock-market-charts.jpeg)
It’s tempting to pull your investments when the market is down — but if at all possible, try to resist the urge.
Once you cash out, you’ve effectively locked in your loss by removing the opportunity to regain your profits once the market bounces back — which it inevitably will, though the exact length of time it takes to rebound is always unknown.
Keep the big picture in mind
![female data analyst working late at night at office](https://cdn.financebuzz.com/filters:quality(75)/images/2023/05/18/female-data-analyst-at-work.jpeg)
Daily fluctuations in the stock market aren’t signs of a crisis. Instead, they’re an essential part of how the market functions. And like we said above, the market historically always rebounds from a crisis, given enough time.
If you’re worried about losing your investments, try to take a step back and see the big picture instead of focusing on daily, monthly, or even yearly changes.
Reassess your retirement age
![senior man sitting in lounge on couch thinking about something serious](https://cdn.financebuzz.com/filters:quality(75)/images/2023/05/18/senior-man-lost-in-thoughts-while-leaning-over-walking-stick.jpeg)
If you’re just a few years from your planned retirement when the economy starts to spiral, you might have to make some hard decisions about pushing back your retirement date.
Part-time jobs and gig work can only bring in so much income compared to the amount you’re making at your current job after decades spent in the workforce.
Obviously, health issues, family plans, and unexpected emergencies can all impact whether you can push back retirement or not. But crises sometimes require drastic actions, so if possible, leave a later retirement on the table.
Bottom line
![happy asian female accountant sitting at office reviewing papers while using laptop](https://cdn.financebuzz.com/filters:quality(75)/images/2023/05/18/happe-female-accountant-using-laptop-while-holding-papers.jpeg)
The stock market’s inherent volatility can take a toll on your retirement savings.
However, generally speaking, you can recoup your potential losses with enough time and preparation — especially if you follow the 12 guidelines we listed above to protect your investments.
Lucrative, Flat-Rate Cash Rewards
FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.
Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn unlimited 2% cash rewards on purchases
Benefits
- Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Cell phone protection benefit (subject to a $25 deductible)
- Can redeem rewards at an ATM for literal cash
Drawbacks
- Foreign transaction fee of 3%
- No bonus categories
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 15 months from account opening on purchases and qualifying balance transfers. 20.24%, 25.24%, or 29.99% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.