How to Prepare for Recession 2013

• Take Advantage of Special Dividends

In anticipation of the dividend tax hike in 2013, several companies are paying “special dividends” in December or moving up their dividend pay date.

A few who are presenting shareholders with an end-of-the-year bonus are Wal-Mart Stores Inc. (NYSE: WMT), Wynn Resorts Ltd. (Nasdaq: WYNN), Tyson Foods Inc. (NYSE: TSN), Carnival Corp. (NYSE: CCL), Franklin Resources Inc. (NYSE: BEN), and Sturm Ruger & Co (NYSE: RGR).

• Buy Gold and Silver

With loose worldwide fiscal policies devaluing paper currency, and the threat of inflation heating up, gold and silver (money alternatives) offer not only a safe haven, but both metals stand to provide more bang for the buck with the potential for some shiny capital appreciation.

Pure plays include precious metal exchange traded funds (ETFs) like the SPDR Gold Trust (NYSE: GLD) and iShares Silver Trust (NYSE: SLV). Mining ETFs such as the Market Vectors Gold Miners ETF (NYSE: GDX) and Market Vector Junior Gold Minors (NYSE: GDXJ) are other options.

• Bargain Hunt

Hunt for beaten down, oversold equities that have suffered at the hands of the current economic woes both here and abroad

Money Morning Chief Investment Strategist Keith Fitz-Geraldexplains, “Because history’s rearview mirrors show that fear, panic, crisis and stress are all classic signs associated with opportunity — and profits.”

He advises looking at stocks in the energy, resource and select technology sectors, “all of which the world needs, as opposed to wants, and all of which are backed by billions of dollars flowing their way whether we go over the fiscal cliff or not.”

Two stocks to consider are Duke Energy Corp. (NYSE: DUK) and Freeport McMoRan Copper and Gold Inc. (NYSE: FCX).

Check out more of Fitz-Gerald’s fiscal cliff opportunities here.

• Save More

Americans should save 6%-10% of their income after taxes to build wealth, provide a cushion and prepare for retirement. However, the current savings rate stands at a measly 3.4%.

Pay yourself first and stay liquid before you succumb to the urge to splurge.

• Ditch the Dependency

The White House rode in like a knight on a white horse during the Great Recession handing out copious amounts of federal and taxpayer dollars in bailouts and subsides. But federal reserves have reached their limit, and state and local governments are slashing services while increasing taxes.

As lawmakers attempt to reduce the swollen U.S. deficit, Americans can’t assume the government will help. It’s time to be more self-sufficient.

That’s why it’s the perfect time to make an affordable investment in education. Check out this presentation on how you can learn the best ways to handle your money ahead of recession 2013.

Related Articles and News:

• Money Morning:
  Fiscal Cliff: Both Sides Optimistic, But Still No Real Answers
• Money Morning:
  Forget January-The Fiscal Cliff Effects are Here
• Money Morning:
  The Fiscal Cliff is a Mole Hill Compared to This
• The Washington Times:
  Obama: GOP resistance may trigger second recession
• Consumer Affairs:
  What Happens If We Go Over the Fiscal Cliff?
• Forbes:
  Expect a Recession in 2013 Without A Quick Fix To The Fiscal Cliff
• FOX Business Network:
  December’s Dividend Bonanza