As you probably know, there is a lot of uncertainty with our economy today. Many economists and analysts have discussed the possibility of a recession in the near future, and given the volatility in the markets, many investors see the possibility, too.
A recession isn’t much fun to think about, let alone experience. However, having gone through this sort of situation several times during my career, I can say that there is good news: we have the ability to prepare for it, if it comes.
There are three things all investors should review and potentially adjust before a recession hits. They are:
· Your diversification. Is your portfolio overly vulnerable to an economic downturn?
· Your risk tolerance. Are you concerned your investments are too risky? If so, now’s the time to find out.
· Your cash flow. How could a recession impact your income, especially in retirement?
In the military, there’s a rule of thumb that goes, “Prior proper planning prevents poor performance.” By taking steps in advance to prepare for a possible recession, we can work to mitigate its effects on both your portfolio and your finances in general.
If you have any concerns about what a recession could do to your retirement, are unhappy with how your investments have been performing, or just need someone to talk to, I’d like to invite you to come in for a free second opinion. Together, we can discuss both your near and long-term goals, your current investments, and cash flow to see if there are any changes you need to make before a recession hits. That way, we can ensure that you are well prepared no matter which way the economy goes.
Please give my office a call at 281-938-1111 to schedule a time for us to meet. And of course, if there is anything I can do for you in the meantime, please don’t hesitate to let me know.
I look forward to seeing you soon!