You are probably thinking that anyone who says there are benefits of economic recessions is off their rocker, but you would be wrong. This post will try to help you to understand that there can be a silver lining to all of these troubles.
Everyone has gotten at least one round of stimulus money. It is enough money to do many things with. You are looking at getting $600 to $1,200, which could mean getting that car repair you’ve been putting off or a new kitchen appliance. Those things that you have been letting limp along, you are finally able to pay for with that money.
Undervalued stocks and bonds
Everything on the stock market has been hit hard by the recession. If you are able to buy stock right now, it is probably about one-half to three-fourths the price it was just a few months ago. The bond market has taken the same hit. Along with these lowered stock prices are the low interest rates. The Federal Reserve keeps lowering its interest rate hoping to unfreeze credit. While it is only working slowly, it makes for much lower rates on loans at this time.
Tax breaks and home values
Not only are home values lower than they have been in a decade, you can now get a tax break of up to $13,000 for buying a home. There are new tax breaks for buying a new car as well. You can save up to $5,000 on your taxes for buying the right car. Those are some true benefits of economic recessions.
New pension plan options
The limits on how much you can put into your pension funds have been raised. Also, you can roll your 401(k) into a Roth IRA without a penalty. Both offer you options to save more of your money for your retirement.
It may seem that there are no benefits of economic recessions, but there are. The best of them are laid out in this article. Hopefully, you can take advantage of some of them.
Do you have any other thoughts on this subject?