4 Steps to Prepare Your Portfolio for a Recession

[DGUtley]

4 Steps to Prepare Your Portfolio for a Recession - Now's the time to make sure your finances are ready to weather whatever the coming year throws at you.

im-690201.gif

Investors might be eager to close the books on 2022, but before you do, take some time to make sure your portfolio is ready for the new year.

This year, your December financial checklist comes with a twist. Many market participants expect a recession in 2023, as policy makers continue to raise interest rates to cool the economy and tame inflation. As you review your finances, make sure you’re positioned to weather the storm. The good news? “We don’t think 2023 will be like 2008,” says Beth Handwerker, an estate and financial planner at James Investment in Beavercreek, Ohio. But even if the downturn isn’t deep, it still pays to prepare, she adds.

Here are some considerations for your year-end financial checklist:


Increase Your 401(k) Contributions - For 2023, the Internal Revenue Service has raised the limit for 401(k) contributions to $22,500, up from $20,500. Plan participants age 50 and older are allowed an extra $7,500 in catch-up contributions, up from $6,500 this year.

READ THE LINK FOR MOREINFORMATION: 4 Steps to Prepare Your Portfolio for a Recession in 2023 - Barrons

[zelmo1234]

If you don't need the money for 5 years, Stay the course and don't look at it, you will be glad that you did

[DGUtley]

If you don't need the money for 5 years, Stay the course and don't look at it, you will be glad that you did

I agree. provided, of course, that you are in sound stuff to begin with.

[RMNIXON]

The real danger is anyone who plans to retire in the coming year. Pension funds and investments could take a major hit if we go into Recession.

Joe has been riding a weak years end GDP and misleading unemployment numbers. The COVID related bounce back has just about run out of steam.

[Omar]

Really, those four steps sounds like good advice whether there's a recession coming or not.

[Peter1469]

For the ~64% of Americans are past living pay-check-to-pay check and depleting their current saving and reaching the max of their credit cards- where are they going to find money to

1. increase their 401Ks?
2. Pad their cash cushion?
3. Rebalance?
4. Worry about required minimum distributions?

For the rest of us- great advice.

[DGUtley]

For the ~64% of Americans are past living pay-check-to-pay check and depleting their current saving and reaching the max of their credit cards- where are they going to find money to

1. increase their 401Ks?
2. Pad their cash cushion?
3. Rebalance?
4. Worry about required minimum distributions?

For the rest of us- great advice.

...that's a valid point. They'll continue to vote D, though,.

[Peter1469]

...that's a valid point. They'll continue to vote D, though,.

Then they deserve what they get.