Reducing Your Risk in the Troubled Economy

Government bailouts, the stock market plummeting, rising unemployment rates.... The current state of the United States economy is anything but secure.

There is no such thing as 'risk free' when it comes to your finances, of course; but watching the news as things seem to fall apart can be unsettling, if not frightening.

According to Ron Lieber of the New York Times, however, there are a few moderate steps--"a middle path of sorts"--each of us can consider to help reduce our personal risk without making "drastic changes."

Here are a few of Lieber's suggestions:

• If you're under 50, don't pull out of the stock market all together. Maintain "consistent exposure to more risky investments" in order to protect yourself from "the biggest investment risk of all, outliving your savings."
• Look into starting your own business on the side, while maintaining your day job, thus "spreading out your income risk."
• Pay more than the minimum on your monthly mortgage bill. You'll be ridding yourself of extra debt, and you will pay off your mortgage ahead of schedule.
• "Split your life insurance policies and annuities among more than one provider."

For more tips, click here to read the article in its entirety.