When the winter season comes around, you’ll likely have to adjust your routines and prepare for the cold. If you’re in colder states, you may be looking to purchase a new winter coat or snow boots, or skiing equipment for your winter holidays. Or you may be restocking your snow salt for what are soon-to-be icy sidewalks and driveways. If you live in warmer states, maybe you’ve closed your windows and patios and put your fans and AC units away.
The same way you prepare for the winter, you might have to prepare your retirement finances for a potential recessionary period. The tricky part is preparing in a way that makes sense for you. There is no simple fix for getting ready for a rocky economy – what is right for you may vary based on your unique financial situation, goals, and retirement timelines.
What Can We Expect from the Markets?
We might see sustained inflation, more market volatility, and an overall tighter economy. For one person, that might mean reassessing their risk tolerance and portfolio holdings to make sure that they hold assets that will at least sustain their value or provide a safer return, such as an interest rate or a dividend yield. Others may take a closer look at their income streams and see how they can either adjust their lifestyles to fit increased inflation or move assets around to provide them with more supplemental income. And others may have sold their homes to downsize to a new one, only to find it harder than before to sell at their target price or to find a mortgage rate that fits their budget.
When markets were smooth sailing, it may have felt easy to put your retirement finances on autopilot and watch them grow. But retirement is a long-term game, and along the way, there are bound to be setbacks and downturns like the one we’re seeing now. So, preparing for the likelihood of a pullback or recession is crucial when it comes to retirement planning.
Why Meet with a Financial Advisor?
There are many factors to be aware of when it comes to protecting what you’ve worked so hard to save for during hostile market environments. That’s why it’s more important than ever to consult a financial advisor that has your best interests in mind. There are many advisors out there that want to sell you cookie-cutter financial products that may not be right for you. Finding an advisor that can offer you a wide range of products and services based on your unique financial situation and goals is a great way to make sure your retirement is protected and can provide you with what you need.
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