According to one recent survey, half of Americans are dipping into their money for retirement. Yes, it is a matter of survival for today, but what will be left for tomorrow? 

During the 2020 financial crisis, we can look back at what happened in 2008. The global recession left a gloomy shadow on the financial market and increased the popularity of financial advisers for retirement plans. 

Let’s look at real numbers: based on the average spending and life expectancy of American seniors, the average person will spend around 987,000 USD from retirement age on. Those who plan to live a bit more comfortably should prepare more money. 

If you don’t have a cash cushion or a savings fund, it is high time to do it. 34% of recent retirees already regret not saving money in advance, and they wish they had been better prepared for retirement. 

Two Easy Strategies to Invest Money Safely


Today we will discuss some strategies that will show you how to save money for retirement even in times of crisis.

Take Advantage of Compound Interest

If each year, two people (one 22 years old and another 32 years old) put the same amount of money (around 5,000 USD) into a savings account, earn the same percentage of interest (for this example, let’s say 6%), and stop saving at the age of 67, one person will be ended up with nearly twice as much money just because they started saving at age 22. 

The investor who started saving money ten years earlier would have around 500,000 USD more by the time they reach retirement. 

If you already started saving at 22, you’ll have your cash for hospital bills by the time you retire. The total amount saved for the investor who started at 22, will be around 1 million dollars. It is the easiest way to start saving for retirement, even during crises. 

Make a Habit of Saving Money

If you save money constantly, it will soon become instinctual. Try to save money online by using an online saving account or another platform. This will allow you to see how your money grows in real-time. Starting even from a deposit of 25 USD will help you to analyze and learn about the market. Also, it doesn’t hurt that your savings will increase, rather than your debts.

How to Invest Money for Retirement Under the Crisis

We have prepared the basic tips for you to follow:

Maximize Liquid Savings

Your saving, checking, and money market accounts, as well as certificates of deposit, will help you the most in a crisis. The value of these resources doesn’t fluctuate with the economic and marketing conditions, unlike ETFs, stocks, and index funds. In the short-term, it is the safest strategy. However, don’t use this strategy in the long run, as your funds may suffer from inflation. 

Invest Money in Stocks Even during the Economic Recession of 2020

Study the stock market, open an account with a broker or investment company, and buy shares that will show growth in the long term. Leave them alone for approximately two years, and then adjust your strategy if necessary.

Besides this, you need to understand that investing in stocks is a long-distance race, during which the initial conditions will change significantly. To illustrate this point, let’s imagine that you retired 20 years ago in May 1998. 

You would have faced a crisis in the same year and severe trials in 2008. Each time the stock market would fall by 40-50%, banks would collapse, companies would go bankrupt, and currencies would depreciate. Your retirement fund would be affected by this, but it would still be better than if you hadn’t invested any money. After all, a bird in the hand is worth two in the bush.

Invest Money in Mutual Funds

Urban Wealth Management

Investing money in mutual funds is an easy way to build a professional portfolio. Mutual funds have a diversity of investments. It makes it much more comfortable for the investor to go through ownership of individual stocks or bonds. Moreover, it allows you to pool your money with other investors and leave the final decisions to professionals. Portfolio managers decide whether to sell or buy. During a crisis, using diversification should always be an option for you. It is extremely hard to rely only on one stock or fund, as even banks can collapse under a crisis. Try to use a trustworthy platform for your investment. eInvestment can be one of them. It is a multi-portfolio investment platform with a suite of differentiated investment options for each of your individual needs. It is the best place for investing money if you are looking for retirement plans. 

Some experts believe that mutual funds are not the best way of investing money for retirement. However, during a recession, it is a better option than relying on savings.

Life Dilemma: IRA or Saving Accounts?

Keep your money and assets in both. Saving accounts are useful for withdrawing money during emergencies (such as COVID-19, unemployment, hospital bills, etc.). On the other hand, withdrawing money from your IRA before the age of 59 is accompanied by a 10% tax penalty. Thus, an IRA is not for emergencies. It has tax advantages and pension savings plans, but during a crisis, it does not work to your benefit. 


A crisis does not have to impede your retirement plans. Keep your funds and stock diverse and your emotions under control. If you are not sure how to invest, try to use the help of financial platforms. Professional, licensed platforms have investing strategies for retirees. Just keeping a safety cushion will not save you from inflation. Stay positive and constantly save money. Remember, even 1 million USD is not enough for a cushy post-retirement life.