There’s a lot of buzz about the “R” word — recession. Nobody is saying it’s coming tomorrow, or next year, but it will get here.
Will you be ready?
There’s nothing like preparation to buffer you from the brunt of a broken economy. What can you do now? Plenty.
Make nice on the job
One of the biggest consequences of a recession is job loss.
“If there is any question about your standing with your current employer, get ahead of that issue now. Make sure your performance and relationships are in top shape to improve your chances of staying off the layoff list,” says Brian Bunn, a certified public accountant in Raleigh, North Carolina.
Batten down the hatches and hustle
If you are self-employed, get a handle on your spending and resources now before revenue declines and you have to make hard decisions. “Kick it in gear now while the economy is still humming to get a few extra clients or more business as insurance against a downturn,” Bunn adds.
Don’t change the playbook too much
The financial advice is the same whether a recession is 10 years or 10 months away, says Brian Cohen, principal and investment adviser with Landmark Wealth Management in Melville.
“No matter the economy, have six months minimum in a money market type of fund, and if you don’t have a guaranteed source of income like Social Security or a pension, make it closer to a year,” he said. You want enough cash, so you don’t have to sell stock at a loss.
Rebalance your portfolio regularly, quarterly or annually. Take some profit off the table in the sectors doing well in good times, and reallocate to what has underperformed, as they won't underperform forever.