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