Preparing Your Finances for a Recession

Remain Calm Every day seems to bring fresh news of losses on Wall Street. For workers and retirees who have their retirement money invested in 401(k) accounts and IRAs

Rebalance Your Portfolio This can be a distressing time for those who have seen their retirement fund balances drop by 20% or more this year

[{"selector":"#anim-7479447b-3e76-42a1-b41d-ceed5becf9a0 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-6.187733473339392%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Revisit Your Budget After years of being relatively flat, inflation came back with a vengeance at the end of 2021

[{"selector":"#anim-b1bc5c93-2949-4775-a6b0-ffab71befc75 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Max Out Retirement Contributions, If Possible For those who are able, now is a good time to contribute the maximum allowed in tax-incentivized retirement funds such as IRAs and 401(k) accounts.

[{"selector":"#anim-60083c73-63ae-43ce-a55b-3ba8c9e06a73 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(17.706262335177186%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Convert Funds to a Roth IRA If you have funds in a traditional retirement account, such as a 401(k) or traditional IRA, now could be a good time to convert those funds to a Roth IRA.

[{"selector":"#anim-dc22c76e-1b9f-4d6d-a746-44150943d974 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-12.114811071437032%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Boost Your Emergency Savings With storm clouds on the horizon, now is the time to be sure your rainy-day fund is filled.

[{"selector":"#anim-4af0af1a-7a9a-4501-ac24-0da94fca13c0 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-7.499999968712082%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Pay Down Debt Rising interest rates may bode well for savings, but they could put a strain on families with debt.

[{"selector":"#anim-91262dd6-00c0-4643-a7ba-6bef80a1e651 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Reevaluate Your Job Situation A recession is usually accompanied by an increase in unemployment.

[{"selector":"#anim-c2b089c7-2a40-4f46-bf2f-69baca842933 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Watch more