Weekly Update – 10/30/2024
As winter approaches, we naturally adjust our habits and prepare for the seasonal changes. Whether you’re in colder states, investing in new winter gear like coats or boots, or restocking sand or salt for icy sidewalks, the shift in weather demands action. Even in warmer climates, it may be time to close up patios or stow away fans and air conditioners.
In much the same way, it’s essential to adjust your retirement plan for economic downturns, particularly if a recession looms. However, just as each person has unique needs when preparing for winter, the approach to safeguarding your finances during challenging times may vary based on your individual circumstances. There isn’t a one-size-fits-all strategy for recession-proofing your retirement plan—it must align with your financial situation, goals, and timeline.
With continued inflation, market volatility, and a tightening economy, preparation becomes even more important. For some, it may be time to revisit their risk tolerance and ensure their portfolio holds assets that can either retain value or provide a steady return, like interest or dividends. Others may need to take a closer look at their income streams and lifestyle to better accommodate rising costs. If downsizing is part of the plan, it might now be tougher to sell a home at the desired price or secure a mortgage at a favorable rate.
During booming markets, consider setting your retirement savings on autopilot to see growth. However, retirement is a long-term journey, and economic changes can occur during this period. Being prepared for setbacks, like the one we may face now, is essential to achieving a successful retirement.
Given the potential risks in turbulent times, having the right support can help manage your savings effectively. Consulting with a financial advisor who truly understands your personal goals and financial landscape can make all the difference. Many advisors may offer cookie-cutter solutions that don’t align with your needs. The key is to find someone who can provide customized advice and a wide range of options tailored to your specific situation.
Take the Next Step
A knowledgeable financial advisor can provide guidance during uncertain markets. A skilled advisor can help you navigate the complexities of your portfolio and adjust your strategy to match your unique financial needs.
If you think you or a family member would benefit from working with a financial advisor, contact our office by calling 865-470-584 or 423-239-6420 to schedule a no-obligation discovery call.