For weeks now, financial experts have been sounding warnings about an incoming recession. Now to be clear, this doesn’t mean doomsday is upon us, or that the economy is about to tank overnight. But there is reason to believe we may have to endure a period of less ideal economic conditions at some point in the not-so-distant future.
Right now, inflation is soaring. To combat that, the Federal Reserve is implementing a series of interest rate hikes that’s apt to make it increasingly more expensive for consumers to borrow. Once that happens, spending is likely to decline. And when spending declines, so does revenue for businesses, which can set the stage for layoffs.
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Now if you’re nearing retirement and are planning to leave the workforce soon, you may not have to worry about losing a job you’re planning to leave anyway. But you should also know that during a recession, stock values could plunge. And if you’re planning to cash out investments to cover your living costs, a downturn could prove problematic.
The good news, though, is that there are steps you can take to gear up for a recession while moving forward with your retirement plans. Here are a few to consider sooner rather than later.
1. Shore up your emergency fund
Do you have enough cash to cover one to two years of living costs in a savings account, or in your retirement plan? If not, now’s the time to start hoarding more of…
