2020-10-17 10:34:02 –
There is admission. At the professional level, the recession does not scare us. Of course, we hate the possibility of unemployment, families struggling to pay bills, the uncertainty we feel as a country, and all the bad things.
But what really scares us is how people react to the recession. It’s a way to deal with people when they’re not sticking to financial game plans. Here are five ways you can exacerbate the recession for yourself — and what to do instead.
Withdraw your investment
Investing in your retirement is not a luxury. You know you will need it in the future, so you set aside money now. If you withdraw from a 401 (k) after a stock market crash earlier this year, you’ve lost most of your retirement money. The story gets worse if we withdraw after the 2018 stock market crash.
You hear us say it many times: don’t try to time the market. We don’t do that. We do not tell our customers to do it. Simply put, you are trading historically solid rates of return for dice.
Don’t see a doctor
Hopefully you don’t have to say this, but care delays and depression are closely linked. Beyond the very obvious reason that your money isn’t very useful to you if you’re dead, deferring regular care and doctor visits comes at a financial cost.
Don’t let our discreet invoices pay you for the care you need. That way, you can avoid long hospital stays, expensive surgery, job failures, and even worse.
I don’t know when to retire
Should you postpone retirement? Do I need to increase my donations to get the amount I need? How you approach your financial situation in a recession has a lot to do with when you need access to a retirement fund. Knowing your ideal retirement age will help you decide what your options are.
I don’t have emergency funds
This is one of the most common mistakes people make, it rains and shines. When the time is right, it seems that little money is needed on a rainy day. When the market is down, you may find it impossible to prioritize it.
The lack of emergency funds to cover the cost of three to six months means that you can build up your credit card debt, fail to invest in the future, or lose your home. Consistently set aside and start with a small amount that you can grow from.
All of the above are generally symptoms of a broader problem. You have no plans to approach your finances.
Playing guessing games is scary, even when the economy is skyrocketing. During the recession, it can be really scary. A financial adviser can help you plan to remove fear from a recession.
Bruce Helmer and Pegweb are financial advisors to the Wealth Enhancement Group and co-sponsors of “Your Money” at KLKS 100.1 FM on Sunday morning. Email Bruce and Peg to email@example.com. Securities offered through LPL Financial, Member FINRA / SIPC. Wealth Enhancement Advisory Services, a registered investment adviser Advisory services provided through LLC. Wealth Enhancement Group and Wealth Enhancement Advisory Services are separate organizations from LPL Financial.