Last week I joined CNBC’s Power Lunch to share my views on the current market environment.
The biggest takeaway from this interview should be the importance of having a plan in place for the next recession. I don’t believe a recession is imminent, but you shouldn’t be caught off guard by the end of a business cycle.
The risk of a recession is greatest to investors nearing or recently entering retirement. That’s because a poor sequence of returns at the beginning of an investor’s withdrawal stage reduces the income available during an their lifetime. Plancorp uses a safety net analysis with these investors to prepare for such an outcome. (Learn more about working with me here.)
For investors with at least a decade until retirement, a downturn is a good thing because it allows them to invest at lower prices. If this is you, just keep investing your savings and let the power of compounding do its thing.
I also had the opportunity to visit the Yahoo Finance set for the first time and chat with the crew from The Final Round.
Are your finances in good order? Take my Financial Wellness Assessment to identify your greatest financial strengths and weaknesses.
