Money Rehab with Nicole Lapin - How to Make Money in a Recession

Episode Date: July 11, 2022

True or false: in a recession, you can only lose money.  Answer: FALSE! Nicole explains why (and how!) in today's episode. 

Money rehabbers, you get it. When you're trying to have it all, you end up doing a lot of juggling. You have to balance your work, your friends, and everything in between. So when it comes to your finances, the last thing you need is more juggling. That's where Bank of America steps in. With Bank of America, you can manage your banking, borrowing, and even investing all in one place. Their digital tools bring everything together under one roof, giving you a clear view of your finances whenever you need it. Plus, with Bank of America's wealth of expert guidance available at any time, you can feel confident that your

money is working as hard as you do. So why overcomplicate your money? Keep it simple with Bank of America, your one-stop shop for everything you need today and the goals you're working toward tomorrow. To get started, visit bofa.com slash newprosmedia. That's b-o-f-a dot com slash n-e-w pros p-r-o-s media. bfa.com slash newprosmedia. Hey guys, are you ready for some money rehab? Wall Street has been completely upended by an unlikely player, GameStop. And should I have a 401k? You don't do it? No, I never do it. You think the whole world revolves around you and your money.

Well, it doesn't. Charge for wasting our time. I will take a check. Like an old school check. You recognize her from anchoring on CNN, CNBC, and Bloomberg. The only financial expert you don't need a dictionary to understand. Nicole Lappin. A few weeks ago, I told you that I think we're in a recession.

And I know that is a very loaded word and it sparks a lot of anxiety in many people. But it doesn't have to. I've said it before and I'll say it again. Recessions are times when great fortunes can be made if you really lean into financial literacy and have some cash on the sidelines. Here are five ways to do it. Number one, take advantage of series I bonds. The I in series I stands for inflation, meaning I bonds inflation protect your money. And they have a serious ROI right now. The annualized interest rate is nine point six two percent. You can buy a series I bond

right now at Treasury Direct dot gov and you can invest up to ten thousand dollars, but start with as little as twenty five bucks. Number two bond with bonds. Just like interest rates are up with Series I bonds and savings accounts, so are treasury bonds. Treasury bonds come in maturation increments of just months up to 10 years. You can buy them through your brokerage, our handy-dandy site, treasurydirect.gov, and you also have access to them through your retirement accounts. Number three, get into real estate without the headache. If you can't afford owning your own home and you don't want to deal with the upkeep or tenants with investment properties, you can still reap some real estate gains without actually owning

a physical structure. Real estate investment trusts or REITs are investments you can buy just like stocks. Different ones have different types of real estate in them, like residential or commercial or malls or even storage units. So you're buying into a pool of real estate holdings without actually having to fix anyone's plumbing. Winning! Number four, index funds and chill. I know it feels tempting to not buy during a market sell-off. It feels scary and like it's only going to go lower. Just remember one of the few truisms on Wall Street, buy low, sell high. And while we're not looking at the lowest low in the history of the stock market, it's not at the high that we've previously seen.

So if you have a long time horizon and you dollar cost average, meaning breaking up your endgame money into little chunks that you invest regularly, then now is a great time to get high quality diversified investments like index funds, which track the whole market index like the S&P 500. Number five, higher interest rates are good for savers. While it stinks that interest rates are going up for folks with debt, like people with mortgages, credit card debt, etc. It's a great thing for savers. While we used to get basically nothing as interest in a bank, now we'll see real returns with traditional savings accounts and CDs. For today's tip, you can take straight to the bank. If my little primer on REITs piqued your interest, keep listening for an episode I'll be airing later this week where we dive deeper.

Money Rehab is a production of iHeartRadio. I'm your host, Nicole Lappin. Our producers are Morgan Lavoie and Mike Coscarelli. Executive producers are Nikki Etor and Will Pearson. Our mascots are Penny and Mimsy. Huge thanks to OG Money Rehab team Michelle Lanz for her development work, Catherine Law for her production and writing magic, and Brandon Dickert for his editing, engineering, and sound design. And as always, thanks to you for finally investing

in yourself so that you can get it together and get it all.