Depending on what you read, we could be headed for a recession. Some experts say it’s happening, some say it’s not. Regardless of what people are predicting, if you’re near retirement you might be worried about a possible recession. Here are some things to do to help ease your mind.
Consider adding even more funds to your emergency fund. If you already have six months of expenses covered, stock up to cover a year. If a recession does happen and the value of your investments takes a nose dive right before you retire, having a well-funded emergency savings account will take some of the stress out of your finances.
You’ll want to check in on your investment portfolio. If your investments are still fairly aggressive, it might be time to change that. As USA Today notes, when you enter retirement you want your investments to shift from riskier stocks to safer bonds. That way if a recession hits you’ll be able to weather the storm a bit easier.
If you’re thinking of downsizing your home, you might want to get on that. The housing market is red hot right now, but if a recession hits, things could cool off considerably. If you end up saving some on your new home, consider adding those extra funds to your emergency savings account.
Wait and Watch
Just because some experts predict a recession is coming doesn’t mean it will. Even if a recession does happen, it doesn’t mean it will last for years. Try to stay calm, think of the long-term and don’t act rashly.