Put Your Cash in a Safe Place
Most investors keep at least some of their investment funds in cash accounts rather than in stocks, mutual funds, precious metals, etc. (Diversification is always important.) But when markets are volatile or investors are unsure about how to invest, many will keep a higher percentage of their money in cash accounts. Since cash accounts (like money market funds, Certificates of Deposit, or savings accounts) tend to provide small returns, a prime factor to consider is the safety of that cash. Bank deposits are protected and insured by the federal government; if a bank goes out of business, your deposits are safe up to a specific amount (typically $250,000 per bank). So while you may not get a huge return, you can feel secure knowing your money is safe and will be there when you want it.