Should you fear for your financial future? When words like “recession” make the headlines, it’s easy to believe that fear is warranted. The media wants you to constantly question: If a recession does come, is your financial plan ruined? Can you still retire on time?
While we previously covered the possibility of a mild-to-normal recession in 2024, here are two reasons why the headlines shouldn’t derail your financial goals:
- We planned for this. Saying “we planned,” doesn’t mean we can predict the future or that we expected the markets to have a bad year. It means we’re confident that our planning takes these events into consideration. Not only do we account for normal market volatility, but we also consider the outlier years. Our planning creates contingencies to help us through the hard times – whether it be market events or life events, such as health changes or job loss.
- We're continually updating your plan. At Credent, we don’t have static plans. Our planning process is ongoing and addresses your short and long-term goals. At a minimum, we review your goals annually to make sure you and your family are on track. There will always be changes, but preparing for them is the first step.
Of course, even with a great team and a dynamic plan, it's helpful to know your next steps:
- Talk to your advisor. It may seem simple, but share your concerns with your advisor. He or she can help you decide what is true, what is worth concern, and what actions to take. If your advisor dismisses your worries, can't answer your questions, or feeds into your fear, they aren’t a good fit.
- Adjust your control factors. We believe in knowing what you can and cannot control. Unfortunately, market returns are out of your control, but portfolio risk tolerance and savings and spending are squarely in your hands. Adjust these factors as necessary.
- Lean into the right strategies. Investment experts that understand how to navigate the down years are invaluable. Tax-loss harvesting, for example, is a great strategy to implement during volatility.
- Stay disciplined and avoid cashing out. As we said in our Q2 outlook: “Managing emotions and practicing discipline may likely prove to be two of the most important investment management tools for the year.” Why? Because not playing the long game in the market can cost you.
There is no better time than now to create or update your plan. If you’d like to set up a complimentary meeting with one of our Wealth Managers to figure out how to get your retirement on track, reach out to us at email@example.com