6 Ways to Get Your Retirement Recession-Ready

February 16, 2023
By kowal-ig

Is your retirement recession-ready? As we approach a potential recession, it is more important than ever to make sure your retirement plan is in good shape. A recession can have a significant impact on the stock market and other investments, which can in turn affect your retirement savings. Whether you are already in retirement or getting ready to retire soon, it is essential to review your retirement plan and make any necessary adjustments to ensure that you will be able to stay on track, regardless of what the market does.

Here are 6 Ways to Get Your Retirement Recession-Ready

Review your investment portfolio. During a recession, the stock market is likely to experience significant volatility, which is why you will want to make sure that your investments are diversified. This means having a mix of stocks, bonds, and other assets that are less vulnerable to market fluctuations. To do this, you will want to work with a retirement advisor who can help you create a customized investment plan that takes into account your specific goals and risk tolerance.
Do not try to time the stock market. We understand it is difficult to see your portfolio take a hit, but pulling your funds isn’t the answer. It is extremely difficult to time when to get in and get out of the market and more often than not, you will miss out on the recovery.
Implement strategic tax planning. Take advantage of historically low tax rates by converting your tax-deferred retirement accounts to Roth accounts. Yes, you will need to pay the taxes when you make the conversion but following your money will grow tax-free!
Save! If you are not saving enough, a recession can make it even harder to catch up. This is why it is important to make sure that you are saving as much as you can, even if that means cutting back on expenses or finding ways to increase your income. Additionally, you should ensure you are taking full advantage of any employer-provided benefits, such as a 401(k) or pension plan. If you are not participating in these programs or not contributing as much as you could, now is the time to make a change.
Have an emergency fund in place. This is a savings account that you can tap into if you experience a financial setback, such as a job loss or unexpected expenses. During a recession, it is especially important to have an emergency fund as a safety net in case your investments take a hit.
Finally, work with a retirement advisor at Kowal Investment Group to get a professional opinion on your retirement plan. Our fiduciary advisors can help you assess your current situation, identify any weaknesses, and provide guidance on how to strengthen your plan for the long term. Schedule your no-obligation review today!

At Kowal Investment Group, we understand the thought of a recession is scary. But the truth is, it’s nothing we haven’t seen before. In fact, most of us will likely live through several recessions during our lifetime. The best thing we can do is prepare, not panic. By taking a close look at your assets, investments, savings, personal goals, and risk tolerance, we can help you ensure that you are well-prepared for whatever the future may bring. Do not wait – now is the time to get a professional review of your retirement plan with one of our fiduciary advisors. Schedule your review today!

Disclosures:

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Please note, changes in tax laws may occur at any time and could have a substantial impact upon each person’s situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of Kowal Investment Group, we do not render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.

Kowal Investment Group, LLC (“Kowal”) is a Registered Investment Advisor. Kowal will maintain all applicable registration and licenses as required by the various states in which Kowal conducts business, as applicable. Kowal does not provide legal, accounting, or tax advice. Consult your attorney or tax professional. Representatives have a general knowledge of the Social Security tenets. For complete details on your situation, contact the Social Security Administration.