10 ways to prepare for the next crash

The economy has gradually rebounded since the wheels came off five years ago, but it’s only a matter of time before the next downturn. Here are some ideas for bracing yourself.

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VIDEO ON MSN MONEY

239Comments
Sep 13, 2013 7:44AM
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Although it may be too late now, another defensive measure is to vote MORONS out of federal office. Notice they seem to be proliferating lately. These people vote on matters that can and will hasten the end of American prosperity, usually for no other reason than to enhance their own personal station. Be smart. Listen to what candidates say and how they say it. Vote OUT the ones you perceive to be in that game for their own personal aggrandizement and vote in those who ACT (not give lip service to) a long term national betterment. 
Sep 13, 2013 10:17AM
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No more living large on borrowed money - time to get real with the numbers!!

Sep 13, 2013 7:19AM
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1.  Keep saving for retirement?  "Plan" is a better word than "save" - plan for your retirement, there are ways to do that without investing in stocks or bonds.  And as far as stocks go, they are trading near all-time highs - is this really a great time to buy?

2.  Pay off your toxic debt?  Go ahead and pay off all your debt, toxic or not.  The ultimate goal is to retire, right?  Retirement is much easier if you don't have any debt.

3.  Reduce must-have expenses to 50% of take home pay?  Good advice.

4.  Identify other costs you can cut?  Yeah, and go ahead and cut them until you pay off your debts.

5.  Improve financial flexibility?  Good advice.

6.  Generate multiple income streams?  I've been shouting this from the roof-tops for years now.  This is the key to financial security and retirement.  Wealth is not measured by the alleged value of your assets, but by the consistent cash flow your assets can generate.

7.  Review asset allocation?  Yes, but not how they mean it.  Expand your mind and think about this on a larger scale, not just stocks or mutual funds.  Look at all your assets and figure out which ones are making you the most money, and which ones are costing you the most money.  Hint:  For many people, their house is their largest asset, but it usually doesn't generate any revenue and has a lot of associated expenses.  Wouldn't you be better off if your largest asset was actually generating positive cash flow?

8.  Stock your pantry?  Yup.  Get a couple of RubberMaid tubs and fill them up with extra food.  If a bag of rice is on your grocery list, buy 2 and stick one of them in the tub.  Same with pasta, canned goods, etc...

9.  Invest in yourself?  Yup.  See #6.

10.  Have a plan B (C&D)?  Yup.  See #6 and #8.
Sep 13, 2013 12:00PM
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The government has not "avoided economic collapse", they have merely temporarily slowed it down.
Sep 13, 2013 12:04PM
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This is not preparing for the next crash. This is standard economic advice - save more, pay off credit cards, blah blah. Stuff you can get from Suzy Orman. I want to know when would be the right time to get out, where to pur money outside of equities, what econ segments gained in the last crash. The people who got hammered in the last crash were poor or modest-income investors, as we bailed out the rich.

 

I already paid off my credit cards and I save as much as possible. But I'm not rich, so I won't get bailed out in the next crash. What can I do to protect myself? That's what I was hoping to hear.

Sep 13, 2013 11:35AM
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No crash until the Fed. stops the printing.   Wall St. loves free money.   Just don't be the last one standing when the music stops
Sep 13, 2013 9:05AM
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Of  course less one in four of us don't have an emergency fund. The CEOs have it in their bank accounts.
Sep 12, 2013 7:35PM
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How to prepare for the next crash?

Given that the next crash will be devastating considering the precarious financial house of cards:

Get the cash out of the banks... recall Cyprus. Put into something you can eat, trade or fire with.  When you have enough of that stuff, the balance into gold.

Get out of bonds.

Get out of stocks. If you won't do this, then move into defensive stocks, away from the high Betas.

Save up a few months worth of payments for that 120-month Mercedes loan or hide it well.

 

The rout in the bond market will kick this disaster off.  The Fed is losing control and is stuck between a rock and a hard place.  Damned if they taper, damned if they continue.

Sep 13, 2013 9:57AM
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My suggestion is to prepare yourselves the same way you would if you were being invaded by a Foreign  Nation. All out Financial War was declared against the people of the United States with the implementation of the 'Bail Out'. If my fellow Americans won't defend themselves, no one els will.
Sep 13, 2013 11:25AM
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You can say that again...do ya remember Ronnie Raygun firing the air traffic controllers...that was just the begining! Screw the working man,keep em stupid and side tracked on issues like guns,gays aand abortion.Meanwhile bleed em dry!
Sep 13, 2013 10:37AM
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Invest in steel, brass, and lead. Keep it dry and hide it until you need it.
Sep 12, 2013 8:03PM
Sep 13, 2013 12:58PM
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Why do they let kids write these articles?
Sep 15, 2013 3:48AM
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What next crash? We're already in part II,  some people just don't pay attention. The  massive QE's are killing Main Street with higher inflation and humungous national debt. The stock markets rising and so are  estate values, seems we've been through this before....

Sep 15, 2013 7:23AM
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Just where does msn find this endless stream of idiots spouting such incomprehensible drivel. If they'd only read what they postulated they'd see how foolish their argument was. 
1. History tells us that kingdoms come and kingdoms go, not that every downturn is followed by a recovery. America is just another in a long line of "super-powers" that have crumbled. This is the first certainty.
2. According to this author if you more than 40% of your monthly income goes towards debt payment, you need a lesson in finance management.  Time for the USA to take a bow then as it fails this test and point no.3 on her list.
3. Building a retirement fund may be sound advice so why is America Inc continually "kicking the can" down the road? This mighty perception seems to have evaded the politicians. Future generations are already consigned to a "third world economy".
4. America doesn't have a Plan A never mind B & C!   It does have a dysfunctional government which is more committed to "party politics" than serving its people. Even more remarkable is the unlimited appetite among ordinary americans for continuing this process. Simple logic tells you if you keep doing the same thing over and over you'll keep getting the same result.

The next "crash" is guaranteed and this time around it will be final. The Feds insatiable appetite for printing money will bite back in the form of dollar collapse and raging inflation. Stockpile the writer suggests, thats a joke. You'll need a truckload of money for a loaf of bread and even if you have it, my gun says I'll end up with your food. Anarchy and the collapse of social order is a given over the next few decades as the once proud USA finds itself relegated to the trashcan of failed nations. 
Sep 12, 2013 9:47PM
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Oops....sky is falling .....again and again and again.
Sep 13, 2013 8:55AM
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#3 !!! and trim your margins ! When markets do go lower, you'll be in a much better position to snap up some bargins.
Oct 12, 2013 3:53PM
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Prepare for the next collapse??? I didn't realize this one had ended.
Sep 15, 2013 8:09AM
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And 73% of Americans have been robbed of any interest they would of made in their deposits, Obama let the banks pay for the bailouts out of your money.
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