Many top Wall Street analysts claim we’re in a rolling bear market. And several even believe that a 2019 recession is on the way.

While I’m no expert on whether or not this will happen, I did plan for it.

Back in October, the stock market experienced a massive correction. And when it did, I sat down a wrote up a 2019 recession game plan. This is a low risk strategy for protecting what you already have, and buying up discount assets when the time is right.

Here are all the details.

1. Open An CIT Savings Account (Seriously, It’s 2% Returns)

It’s rare to find a low-risk, guaranteed return on investment. And when you do, they pay peanuts.

My local bank charges $30 a year in service fees. And their annual interest rate is so low that you’re only getting $15 for every $10,000 invested.

You need $20,000 in the bank just to offset your service fees.

I hate this, so it was really cool to discover CIT. They’re an online bank, offering high interest savings accounts.

If you deposit $100 a month into your savings account, CIT pays you 2.25% annual interest.

That’s pretty good. Especially considering how many bonds or dividend stocks offer lower returns at a higher risk.

If you’re just planning to sit in cash and wait for investment opportunities, this is a great option.

You’re getting similar yields to most short-term bonds, without having to lock your money up. This gives you the funds to buy up cheap stocks or invest in real estate if the market tanks.

If there is a 2019 recession, this is a pretty safe place to park your money.

2. Do Your Homework

Once you have some money, its amazing to look around and see how many people know nothing about investing.

Go on Twitter sometime and look at all the terrible advice like “Open multiple bank accounts overseas” (can’t, there’s something called FATCA). Or “Buy 10 rental homes in 10 different countries” (enjoy the logistical nightmare).

There’s even an SEC rule making it very difficult to consistently day trade unless you have $25,000 in funds. Something most people never realize.

If you’re going to invest in something, research it.

Doing so won’t make you an expert, but it will separate fact from fantasy. And oftentimes that’s enough to keep you out of trouble.

When BitCoin was really big, I bought an Audible book called CryptoAssets.

This book is a little dry, but it did provide valuable insights into avoiding scam coins and manias. Meanwhile, a lot of people did no basic research. Instead choosing to blindly buy “hot, cheap alt coins” or take out loans to invest in BitConnect.

There’s a massive difference between the quality of information you get from a well-researched book vs what you learn off YouTube or social media.

You can choose from a ton of classic finance books (like The Intelligent Investor or One Up On Wall Street), but Investing All-in-One For Dummies is probably the most comprehensive (for beginners) that I own. It’s an eight books in one and covers everything from stocks to real estate.

I’m not going to lie and say I’ve read the thing cover-to-cover, or that I even plan on reading certain sections.

But, it is a detailed book, covering all the essentials for building wealth.

When you have a question about some investment term or strategy, this book usually has a section explaining it.

If you want to invest or buy the dip (be it cheap houses or depressed stocks), go do some actual reading and research before going all in.

3. Sell Gold, Guns, Liquor, Or Survivalist Stuff

(Watch For An Uptick In Ads Like These)

I once met a guy who started a mail order coin brokerage during the late 90’s. He did alright, until the Great Recession and subsequent Obama election.

Then the money rolled in.

Instead of advertising gold Doubloons in Armchair General Magazine, he started marketing towards the survivalist crowd or economic doomsayers.

Whenever there’s a panic or a crash, a lot of people (many with no traditional interest in investing) scare themselves into buying huge quantities of gold.

A 2019 recession will be not different.

If I were a dropshipper, I’d create a survivalist store. Or for affiliate marketing, I’d run ads for gold, bomb shelters, and non-perishable foods.

Fear based businesses really pick up in a down economy.

4. Keep Dollar Cost Averaging

(Take Advantage Of Low Prices For Some Incredible Gains)

The stock market can continue to plummet all through 2019 and 2020, but I’ll keep making my regular monthly contributions.

VOO (Vanguard’s S&P 500 index) will recover. And if it doesn’t, there are bigger problems at hand (should have bought that bomb shelter for myself).

While I plan on keeping a cash reserve to dump into cheap stocks (or other investment opportunities), I’ll keep dollar cost averaging as well.

It’s a solid strategy to diversify across time, and I don’t plan on needing the money for anything else anyway.

If the market takes 10 years to reach new all-time highs, so be it.

5. Invest In Yourself

(There’s Always Another Day)

I’ve said this before and I’ll say it again: Investing in stocks (and real estate to a degree) will not make you rich.

It will grow your existing wealth, and it does create true passive income (if you have enough of it). But it wouldn’t drastically change your life in a short amount of time.

You need one million dollars worth of 3% dividend stock to generate $33,000 a year in tangible income.

You can also make that with a few hours of extra work each week, and a lot less capital.

I had to renew the Thirty Days To X domain name this week. Total cost: $25 for a full year through HostGator. In terms of “virtual real estate” this site gets decent traffic. More than most real world malls or shopping centers. Yet my annual maintenance is one-millionth of the price.

Even stuff like manual labor or a part-time job offers better initial returns than most stocks. And these jobs build up your capital for buying bigger assets.

If there is a 2019 recession (and it is a repeat of 2008) then the S&P 500 drops 50%.

Having an extra $20,000 – $30,000 on hand lets you buy 160 – 240 shares of something like VOO. That’s a pretty good position. Especially since the broader stock market always recovers.

You may as well invest in yourself and grow your earnings to capitalize off any opportunities which pop up.

Doing so costs very little (here are five businesses you can start for under $10) and the returns are limitless.

Closing Thoughts

Whether or not a 2019 recession happens is anyone’s guess. But, if there is a correction, it’ll be smart to have a cash reserve for purchasing discount assets.

Dollar cost averaging funds is fine (assuming you don’t need the money anytime soon), but 2% risk-free gains through CIT is great too.

You’re getting about the same returns as some safer bonds, without locking down your money for years on end.

Perfect for buying stocks or real estate at their low-point.