If you’re don’t know what to make of today’s current market situation, you’re not alone.
Turn on cable news, and you’ll find a bunch of confused experts who aren’t sure whether to blame coronavirus, underlying economic concerns, or both.
To put it a different, more honest way: they have no idea if or when we’ll experience another sell-off in the coming months.
And as much as we hate to say it here at the Stock Market Junkie, that’s why it’s important to always have ways to make money that have nothing to do with stocks.
And if the coronavirus panic has made anything clear, it’s that counting on growth in the stock market could be one of the worst financial strategies for 2020.
That’s why we’ve spotted 3 opportunities to make some extra cash no matter which way the market is heading.
Do You Qualify for Lump Sum Social Security Benefits?
You walk into your local Social Security documents. You have all the necessary documents: your Social Security card, your birth certificate, maybe your service papers, and your W-2 forms…
Then, you get a curveball from the representative…
“Would you like a 6-month lump sum of your benefits?”
Although this option has been around for a long time, very few no it exists. They're not prepared for the choice, so they panic and say no.
A look at the numbers means this may be a better option for many, but it comes with a catch.
Say you waited until age 70 to collect your benefits… And say your under your salary history, your maximum social security benefit is $3,790…
You would be entitled to a lump sum of $21,830!
But the catch is that you'd reduce your monthly checks by 4%. So instead of that $3,790 benefit, you'd receive $3,638/month, $152 less than you would have received otherwise.
Based on our numbers, adjusting for inflation, the break-even point is two months shy of 10 years. But other considerations (e.g. the ability to pay off or reduce high-interest debt in the short-term) will make this an even wiser move for many seniors.
The one requirement for collecting this lump-sum is that you have reached full retirement age (FRA). If you file to collect before that age, you are not eligible. If you were born in 1960 or later, the FRA is 67. If you were born from 1943-1954, it is 66.
Cash-Back Rewards Credit Cards
Recessions and bear markets can make spending money painful, but cashback can make it a little bit easier. There are credit cards that will pay you somewhere in the range of 1-3% for every purchase you make.
There is even a card out there that will pay you 6% cashback on groceries and popular subscription streaming services (like Netflix, Hulu, and Spotify) as well as 3% on gas. That card is called the American Blue Cash Preferred.
If a card with an annual fee isn't for you, then there are plenty of other cards out there that will give you cash back without the fee. For instance, the Bank of America Cash Rewards card will give you 3% cash back in whatever category you choose.
The important thing to remember when using this strategy for collecting a little bit of extra cash: NEVER SPEND MORE THAN YOU CAN AFFORD, and never carry a balance. Just one month of carrying a balance could destroy any extra cash you earn from this strategy.
Real Estate Investment Trusts (REITs)
Want the reward of investing in real estate without all of the headache? You can do that with a real estate investment trust. This investment will give you much higher dividends than stocks, bonds, or bank investments, but you can also sell your stake at any time.
For example, Gaming and Leisure Properties (NASDAQ: GLPI) has a dividend yield of 6% so far this year, much higher than any government bond on the market today.
The value of REITs tend to move opposite of interest rates. And with interest rates as low as they ever have been and The President calling for even lower rates, very few expect an interest rate hike anytime soon.
Pay Off Your Credit Card Debt
If you're looking for the most returns during this period of stock market uncertainty, look no further than your credit card debt. If you have money that you don't know what to do with (i.e. money you would otherwise invest in stocks), this should be your first target.
If you're skeptical, imagine receiving a 19.02% return, year-over-year. A $10,000 investment would give you $23,884 in just 5 years.
The opposite is also true. If you're carrying $10,000 in credit card debt on a card with an average credit card interest rate (19.02%), you'd owe $23,844 after just 5 years.
BONUS: Income EXPERT — Neil George — Invites You to…
Discover How You Can Easily…
- Learn the secret of the $50,000 lump-sum Social Security check. Seriously, it couldn’t be easier! Winning!
- Use what I like to call the “F.H.A. Loophole” to get the government to pay your mortgage — PLUS hundreds in extra cash on top.
- Pocket upwards of $197 PER HOUR simply by taking a walk through the woods in the fall… or $137 while visiting your favorite beach in the summer!
- Earn 70-times MORE INTEREST on any FDIC insured savings account (available in all 50 U.S. states)… And much, much more!
