Jun 29, 2019
This week’s topic is the danger of retiring during a recession. The problem with retiring during a recession is that your investment portfolio may also drop, 10, 20, or 30%, and can derail your plans for retirement.
Today, we’re wrapping up the weekly theme on the Danger of Retiring During a Recession, but before we slide into home base with our Sunday recap tomorrow, I have one last tip for you on this topic:
Be flexible with your withdrawals. In addition to keeping enough cash on hand to help you weather a potential recession in the early years of retirement, another way you can protect yourself is by remaining flexible.
Here’s what I mean by that: what are you willing to do to lessen the impact of a stock market downturn and a recession on your retirement portfolio? Are you willing to reduce your income from your portfolio? Are you willing to go back to work or work part-time?
Cutting back or stopping your portfolio withdrawals can be huge for helping you weather the storm of a recession in early retirement. Are you willing to work part time, scale back your lifestyle? It’s important to think through what you would be willing to do to lessen the impact of a stock market drop on your portfolio, before you’re faced with the decision to drive an Uber every day just to buy groceries.
So I encourage you today to think about how flexibility with your portfolio withdrawals in the face of a recession and a market downturn can help protect you, and what you would be willing to do in order to cut back or better yet, completely stop withdrawals during a stock market downturn.
That’s it for today. Thanks for listening. Tomorrow, we’re going to recap the week and I’m going to give you a little preview of next week’s theme.
My name is Ashley Micciche and this is the One Minute Retirement Tip.
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