Preparing for the Next Recession: Six Considerations for Retirees

Just like spring and summer always lead to fall and winter, we know winter is coming and another recession is on the horizon, we just don’t know when. If you have a leak in your roof, when’s the best time to fix that leak? Before it rains, because once the rain comes, it’s too late.

We’ve seen this movie before — sky-high real estate prices coupled with sky-high stock market prices — and we have our own ideas on how it’s going to end. Some retirees may be concerned about going through another 2008-type of crash again at this age now that time is no longer on their side. I’m 48 years old, so I have 20 more years before I even need my money. However, my retired clients are living off their money today.

I believe retirees should consider being more disciplined and risk averse in the good times so you can take advantage of the bad times and not lose more than you’re comfortable with when the bad times do come.

For retirees who are no longer working, their tolerance for risk at this age and stage of life has gone down. They’ve typically switched from the growth stage to the distribution stage, where they want to help preserve their wealth and generate income from their retirement assets.

Leave a Reply

Your email address will not be published. Required fields are marked *

Proudly powered by WordPress | Theme: Lean Blog by Crimson Themes.