{"id":11765,"date":"2025-03-14T23:15:22","date_gmt":"2025-03-14T23:15:22","guid":{"rendered":"https:\/\/finderica.com\/?p=11765"},"modified":"2025-03-14T23:15:22","modified_gmt":"2025-03-14T23:15:22","slug":"near-retirees-recession-playbook-turning-worry-into-wins","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=11765","title":{"rendered":"Near-Retirees\u2019 Recession Playbook: Turning Worry Into Wins"},"content":{"rendered":"\n
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<\/fbs-accordion>getty<\/small><\/figcaption><\/figure>\n

You\u2019re sitting in your office hurrying to get that last project accomplished before time runs out. It\u2019s not just the usual deadline. It\u2019s your deadline. It\u2019s your retirement. You really want to finish this career capstone, but that\u2019s not all that\u2019s on your mind. You can\u2019t help but sense the joy you\u2019ll soon have when you pocket that gold watch. In a little more than a year, life will be nothing but golf courses and grandkids. And maybe an occasional grand tour of that place you always wanted to visit. The last thing you want to hear is that there\u2019s a recession coming.<\/p>\n

But what if the downturn hits just as your career clock rings that final click? If you\u2019re like many, it\u2019s not unlikely you\u2019ll start wondering if the economy just dashed all your dreams. You\u2019re probably worrying that your best laid plans were not the best or not laid correctly. Maybe you\u2019re even considering whether you should work a few more years.<\/p>\n

Should near-retirees worry about an impending recession?<\/h2>\n

So you\u2019re about to cross the finish line into retirement and the economy tanks. Don\u2019t worry. It\u2019s not the setback you think. It\u2019s really a set-up for success. It may not seem that way with the market and interest rates falling. This chaos only emboldens your anxiety.<\/p>\n

Rest assured, there\u2019s more than a silver lining in that gray cloud. In fact, many experts agree you can retire in a recession<\/a>. And people are eager to do so. Just look at the number of search results on this topic. Nearly everywhere you turn, one publication or another features a checklist for you to follow<\/a>. (However, don\u2019t be tricked into believing any of these are \u201cfool-proof.\u201d)<\/p>\n

The easiest strategy to calm your nerves is to maintain enough reserves to accommodate two years of retirement expenses. That\u2019s more than it takes for the typical bear market to recover all its losses. The last thing you want to do in retirement is sell portions of your nest egg when stocks are down. Having a tidy sum of emergency savings can stave off the bear until it\u2019s safe to sell again.<\/p>\n

But there\u2019s more you can do. Economic challenges often reveal opportunities.<\/p>\n

What should near-retirees really worry about?<\/h2>\n

That\u2019s not to say there aren\u2019t any hazards for those about to retire.<\/p>\n

\u201cFor near-retirees, the greatest risk is the possibility of job loss or reduced income, which can delay their retirement plans and affect their ability to save adequately for retirement,\u201d says Jake Falcon, founder and CEO at Falcon Wealth Advisors in Kansas City, Missouri. \u201cIf an individual is expecting to retire in three years and they unexpectedly lose their job, it can be difficult to bridge the gap.\u201d<\/p>\n

There\u2019s no question an expected job loss throws a monkey wrench into your retirement planning. It helps if you\u2019ve got severance or at least an advanced warning. But those fewer years to save just might push you to make smarter moves now. These smarter moves can make your retirement more comfortable.<\/p>\n

Many older workers and even retirees start side-hustles to help soften the blow of economic volatility. These micro-businesses are nimbler<\/a>, making them less susceptible to the outrageous fortunes of recessions.<\/p>\n

Getting a pink slip isn\u2019t the end of the world. It may be the springboard to a whole new world of an active and engaging retirement. Remember that golf course you dreamed of in retirement? Believe it or not, one retiree actually bought a golf course in retirement. Retirement isn\u2019t all about idly sipping lemonade. In your early retirement years, you\u2019ll want to keep a certain level of activity. What that activity is depends on you. A side-hustle could help give you a strategic advantage heading into retirement.<\/p>\n

Of course, that\u2019s not the only thing you can do.<\/p>\n

How to prepare to retire in a recession<\/h2>\n

If you\u2019re a year or two away from retirement and you have your two-year cash cushion in safe tidings, a timely recession may be precisely what the doctor ordered. Since you\u2019re still in the saving mode, lower stock prices can reward you with a decided boost in the early years of your retirement.<\/p>\n

\u201cNear retirees may have an opportunity to put fresh earnings into the portfolio and take advantage of lower markets,\u201d says Bobby Mascia, CEO and founder of Green Ridge Wealth Planning in Montville, New Jersey. \u201cTactfully positioning themselves, and looking at their entire plan, is crucial in these near-retirement years as investors gear up to stop working.\u201d<\/p>\n

The bounce back from a market correction (defined as a 10% drop) or a bear market (a fall of more than 20%) can give you a leg up as you head into retirement. Here\u2019s a word of warning, though: Don\u2019t try to time the bottom of the market. Even those who invested at the highs of the last two recessions<\/a> have since earned over 10% annually.<\/p>\n

Just get those retirement plan contributions invested. If you have a catch-up provision, use that to the fullest. You\u2019re not starting over, you\u2019re stacking the deck in your favor. Taking this approach can enhance your retirement readiness.<\/p>\n

But wait! There\u2019s more!<\/p>\n

What can near-retirees benefit from when there\u2019s a recession?<\/h2>\n

An across-the-board sale on stocks isn\u2019t the only thing a recession offers you. There\u2019s another bonus gift that can come from a recession.<\/p>\n

\u201cIt can also make downsizing more affordable if the Fed cuts rates and, therefore, mortgage rates go down,\u201d says Bobbi Rebell, personal finance expert at BadCredit.org in Boca Raton, Florida. \u201cMany near-retirees may have mortgages right now that are much lower than they can get if they move, so they are hesitant to take on a higher rate loan. If the central bank eases rates because of a recession, and mortgage rates fall, it makes moving a more realistic option and will allow them to shed the more expensive homes they have had while raising a family.\u201d<\/p>\n

Your first thought as a near-retiree may be that a sudden recession will rob you of your retirement. If you play your cards right, however, the truth might be quite the opposite. You\u2019re not a victim. Whether it\u2019s stocks or smaller homes, you\u2019re a savvy shopper in a buyer\u2019s market. That makes it the perfect time to leapfrog into the next stage of your life.<\/p>\n

What advantages do recessions offer near-retirees?<\/h2>\n

You control your destiny. It\u2019s your retirement under your rules. Job risks, if you even have any, are manageable. Lower prices are your ally. A recession won\u2019t steal your retirement before you clock out of your career. It hands you a discount on the way there.<\/p>\n

Trusted sources remind us<\/a> near-retirees who plan carefully can turn recession worries into winning prospects. They can ensure you that your retirement remains on track regardless of economic fluctuations.<\/p>\n

Your retirement dream is still attainable. The finish line is still yours.<\/p>\n

Cross it with a satisfied and confident grin.<\/p>\n<\/div>\n

Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

getty You\u2019re sitting in your office hurrying to get that last project accomplished before time runs out. It\u2019s not just the usual deadline. It\u2019s your deadline. It\u2019s your retirement. You really want to finish this career capstone, but that\u2019s not all that\u2019s on your mind. You can\u2019t help but sense the joy you\u2019ll soon have<\/p>\n","protected":false},"author":1,"featured_media":11766,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[196],"tags":[4837,3442,3714,4838,2160,1539],"class_list":{"0":"post-11765","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-news","8":"tag-nearretirees","9":"tag-playbook","10":"tag-recession","11":"tag-turning","12":"tag-wins","13":"tag-worry"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/11765","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11765"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/11765\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/11766"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11765"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11765"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}