Ep 55: How Should I Prepare for a Possible Recession?

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Are we headed into a recession? That’s the question that’s on a lot of minds. On today’s show we’re going to make sure a recession doesn’t ruin your finances or retirement plans. We’ll also welcome retiree and investor Jim Manning to the show so he can ask questions, which are probably the same questions you have.

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Show Notes

If you have questions about a possible recession, you aren’t alone. It’s on a lot of people’s minds these days.

Jim Manning is probably similar to many of you. He is an investor, had a successful career and is now retired. He also has a lot of questions about a possible recession. Are we headed towards one? How should you prepare? How do you handle the anxiety of that?

Jim is a family friend of ours, so we asked him to join the show as a co-host so we could answer his questions about recessions. You can read a snippet of our Q&A below or hear our entire conversation in the podcast.

How do you know you’re prepared for a recession?

It can be scary, especially if you’re retired and living on your investments. Whether we’re headed into a recession or not, you need to have a plan in place.

If you’re still working, we first recommend building up a rainy day fund of three to six months of expenses. If you’re laid off, that money will help you until you find a new job. You also need to focus on paying down your debts.

If you’re within five years of retirement or already retired, you want to start building up your war chest of funds that aren’t subject to as much volatility.

Nobody knows when a recession will hit. The most important thing is to have a plan so you can minimize your fears and stress.

Listen to more of our conversation in the full podcast or use the timestamps below to jump to a specific section.

Use the timestamps below to jump to a specific section. 

[1:21] – Meet Jim Manning

[4:55] – Jim’s business experience

[6:19] – Jim’s product was used in space

[12:35] – What is a recession?

[14:25] – How to prepare

[21:25] – Jim’s experience with recession

[23:52] – Going to cash

[29:09] – How long could it last?

[36:30] – Adjusting investment strategy

[40:28] – Age makes a difference

[42:32] – Minimize stress and fear

Thanks for checking out this episode. We’ll talk to you again soon.

 

“The word “recession” – I think we automatically tie it to the stock market.”

-Scott Sierens