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 30-year 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?
As some of you know – I served in the Canadian Armed Forces for over 10 years, and there was a rule of thumb that went, “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 for a chat 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 use my online calendar link to schedule a call. 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 chatting with you soon!
CMT, CFTe, CIM, FCSI
Q Wealth Partners