Many people are concerned that a major recession could be on the horizon in today's unpredictable economy. The chance of a major recession in the United States is a matter of debate among experts, but many agree it is higher than usual.
According to Statista Research Department, it is projected that there is the probability that the United States will fall into another economic recession is 57.13%. This is an increase from the projection of the preceding month, where the possibility came to 47.31% percent. The U.S. recession probabilities are predicted a year in advance using the difference between 10-year and 3-month treasury rates.
Some factors that could trigger a recession include rising gas prices, a hawkish Federal Reserve, a slowing economy, supply chain disruptions, and inflation.
Greenlight Capital's David Einhorn said on CNBC's "Halftime Report" he maintained his negative stance on the stock market as inflation and interest rates could shoot higher.
I think we're in a policy now, which is probably pretty good for Main Street, but it's going to be difficult and increasingly difficult for financial assets.
When you are preparing for retirement or have already retired, the economy and its impact on your savings is a significant concern. If you're lying awake at night worrying about your financial future, it's time to take action!
For those over age 50, ensuring your financial situation is secure and prepared for a potential recession is essential. Creating an emergency fund, paying off debts, and diversifying your investment portfolio are proactive ways to prepare for economic uncertainty.
Being proactive and building financial resilience is crucial to surviving—and even thriving—during an economic downturn. And even if we manage to avoid a recession, taking steps to secure your finances will set you up for long-term financial well-being in the face of an ever-changing economy.
Purchase a Home Warranty
When a recession hits, the last thing you need is a major home repair expense. Consider purchasing a home warranty to avoid high repair and maintenance costs if something goes wrong with a home system or appliance. Home warranties are designed to cover repairs and replacements to items not covered by regular home insurance, such as breakdowns in heating, cooling, electrical, plumbing, and appliances. If you're looking for coverage options, this may help you decide!
Be Proactive About Long-Term Care Planning
Many people are concerned about retirement and what soaring inflation rates could mean for long-term health care affordability. With rising costs for essentials like groceries and housing, long-term care costs are also growing. Having a long-term care insurance policy can provide some invaluable peace of mind. It will ensure you can access quality care regardless of the economic climate.
If you need money for long-term care right now, securing a reverse mortgage on your home may be a good idea by taking advantage of inflated real estate prices.
Manage Your Debt
Managing debt is essential for financial stability in good times and bad. If you're worried about a recession, take care of your debt now! The Balance Money suggests first paying off high-interest debt, like credit cards, and avoiding new debt as much as possible. If you have multiple debts with high-interest rates, consider consolidating them into a single loan with a lower interest rate. This can help you save money on interest and make it easier to manage your debt payments. Establishing a household budget can help you prioritize your spending, cut unnecessary expenses, and ensure you're on track to pay off your debt as soon as possible.
Diversify Your Income Sources
Relying on a single income stream can leave you vulnerable to unexpected job loss during a recession. By diversifying your income sources, you can reduce your financial risk and create new income opportunities! Moves Financial suggests exploring multiple sources of income, such as starting a side business, freelancing, or investing in stocks. While diversifying your income sources can take time and effort, it can provide significant financial security and long-term growth benefits.
Fixed-interest investments, such as money market funds, can be a suitable way to prepare for economic uncertainty when interest rates are rising. If you are looking for a way to invest your money for a short period of time, you can also consider a 6-month CD.
Maintain a Positive Attitude
The right mindset is critical to achieving and maintaining financial stability, especially if you're worried about a recession. Your attitude can influence your financial habits and decision-making. Try to stay positive, even if you're stressed about money. Maintaining a positive mindset will help you focus on your goals and avoid making impulsive financial decisions based on fear or anxiety. At the same time, be open to new opportunities and willing to adapt to changing circumstances. Flexibility is critical in uncertain times!
Economic downturns can happen anytime, and it's important to be prepared to maintain financial stability in the event of a recession. By taking steps to manage debt, diversify your income, plan for long-term care, and invest in asset protections like a home warranty, you can navigate these uncertain times with greater confidence and security.
About the Author
Donna Erickson is a retired public educator. She created Fit Memory with a few friends as a way to promote wellness among senior citizens with the hopes it will help inspire others to make the most of their golden years.
Contributor since December 8th, 2021
Economic uncertainty is always a concern, but it takes on additional significance once you are retired. You never know when an economic downturn may occur. Being prepared will enable you to enjoy better financial security.
We can't time market downturns. Nor can we time when our health will start to decline. Chronic illness, accidents, mobility difficulties, dementia, and frailty will create long-term health care needs. These long-term care services can quickly change your financial situation unless you have prepared well beforehand.
Long-Term Care Insurance offers guarantees. During a downturn in the economy, these tax-free benefits are guaranteed and will pay for your choice of quality care service, including care in your home.
How expensive is long-term health care? Very. It can change your lifestyle and legacy depending on where you live and the type of services you require.
If you have yet to consider how the costs and burdens of aging will affect your family and finances, the time to do so is now, ideally when you are in your 40s or 50s, and take advantage of good health discounts.
Don't delay, as LTC Insurance is medically underwritten.
Premiums are based on several factors, including:
selection of riders and options
amount of benefits within the policy
LTC Insurance Specialist Can Benefit You
A Long-Term Care Insurance specialist can be beneficial by providing the knowledge and experience necessary to help you select the best policy to meet your needs.
Specialists can help to explain the different types of coverage, assess your needs based on your current health, financial resources, and family members, and evaluate potential policy options to determine the best fit for a consumer's budget and needs.
These experts in long-term health care planning can also assist you in understanding the tax benefits of Long-Term Care Insurance and how it fits into retirement planning. You can save time and money by using a specialist's assistance to assess various policies' prospective costs and coverage. Premiums vary dramatically between insurance companies, as do their underwriting rules.
A qualified Long-Term Care Insurance specialist will match you with the best company to save you money. A specialist will put together accurate quotes from all the top companies based on your age, health, family history, and other factors.
Resources on LTC NEWS
LTC NEWS offers news, guidance, and resources to assist you in long-term health care planning. Additionally, LTC NEWS provides reviews of various Long-Term Care Insurance plans.
Here are some of the resources that are available on LTC NEWS:
Parent’s Health Declining? Do They Need Care Now?
Get quality care for your parent or parents if they require it. LTC NEWS can assist. We've put together a few comprehensive guides to help you along the way.
Find help locating quality caregivers or long-term care facilities and get recommendations for a proper care plan, whether a person has a policy. - Filing a Long-Term Care Insurance Claim.
Make sure your loved one uses their Long-Term Care Insurance if they are fortunate enough to have it. Families sometimes postpone taking advantage of the benefits thinking family members can provide care, saving the benefits for later when it is deemed "more necessary."
Delaying the use of available Long-Term Care Insurance benefits is not a good idea. The policy provides you with access to quality care when someone needs it. It also gives loved one’s time to family instead of caregivers.
These four guides can be very helpful as you try to find appropriate long-term care services for a loved one:
Today's Reverse Mortgages Can Benefit Older Families
Some people have a large portion of their savings in their homes. With the help of reverse mortgages, you can find ways to pay for quality in-home care, pay for LTC Insurance, and even assist with cash flow during retirement.
Yes, today's reverse mortgages may be the perfect way to pay for a Long-Term Care Insurance policy or even cover the cost of in-home care if you or a loved one is currently in need.
Asking an expert with your questions will help you learn more. Mike Banner, a columnist for LTC NEWS and the host of the television program "62 Who Knew," will respond to your inquiries about long-term care, reverse mortgages, aging, and health.
- Just "Ask Mike." - Reverse Mortgages | LTC News.
Be Part of LTC NEWS and Improve Your Website's Traffic and SEO
Writing an article for LTC NEWS can improve your website or blog's SEO and gain exposure and traffic at the same time by being a contributor to LTC NEWS. Getting your company's website URL on LTC NEWS can improve SEO by helping to increase your visibility online. Additionally, being on LTC NEWS can help boost your website's authority in the eyes of Google and other search engines, leading to a higher ranking in search results.
You can promote yourself, your business, and your website or blog. It can include links to other sites, and you can share the article link once
published on your website or social media. However, it must have editorial content exclusive to LTC NEWS and not just an advertisement.
Marketing and Advertising on LTC NEWS
LTC NEWS can help you drive traffic to your website and attract people who are interested in your products and services. Furthermore, you can also improve the SEO of your website so your site shows higher on the search engines. The goal is to get more customers that can find you when they search for your products and services.
There are various marketing options available with LTC NEWS. Traditional advertising, sponsored content articles, strategic alliances, and more are available.
Learn more about how LTC NEWS can help market your business, drive traffic, and improve SEO - Advertise With Us | LTC News.
Sharing News with LTC NEWS
Include LTC NEWS in your press release distribution. If your group, organization, business, political committee, etc., have news to share, send it to LTC NEWS. Email - email@example.com