Bucking the odds, economists recently lowered recession odds for the year ahead under 50% for the first time in over a year, reports the Wall Street Journal in its latest survey.

CORAL GABLES, FL, November 03, 2023 /24-7PressRelease/ — Surprisingly, Goldman Sachs puts the odds of recession even lower at just 15%, around the historical average. Their outlook has dropped steadily since last summer as resilient economic data accumulates.

However, some experts warn that recession risks still lurk under the surface. Interest rates remain high as the Federal Reserve battles inflation, which could dampen economic activity going forward. And threats like rising consumer prices, global conflicts, and market volatility persist.

“While the short-term economic outlook may be improving, it’s unwise to become overconfident,” said Justin Stivers, founder and Wealth Management Specialist™ at Stivers Law. “Markets can turn quickly, and economic weaknesses can compound. It’s better to be safe than sorry when protecting your hard-earned assets.”

Stivers advises maintaining adequate emergency savings, minimizing high-interest debts, and diversifying investments despite the rosier recession predictions. Their firm has decades of experience guiding clients through varied economic cycles and turbulent markets.

“We’ve seen downturn probabilities shift drastically within just months,” he noted. “The smartest approach is to prepare for any scenario, not just the most likely one.”

Amid economic uncertainty, Stivers shares six planning strategies to recession-proof your finances.

Maintain Adequate Emergency Savings
Having 3-6 months of living expenses set aside provides a cushion against unexpected events or income loss during a downturn. Don’t abandon saving diligently even when times seem good.

Building up emergency cash reserves needs to remain a top priority. Whether it’s in a savings account, money market fund, short-term CDs, or similar liquid vehicles, this money should be earmarked for the unforeseen. Resist dipping into it for non-emergencies. Determine a monthly savings target and automate transfers to enforce discipline. If you haven’t established this fund yet, now is the time.

Pay Down High-Interest Debt
Carrying excessive credit card, auto loan, or personal debts leaves you vulnerable when a recession hits. Accelerate paying them off now before rates potentially rise further.

Focus first on eliminating debts that carry double-digit interest rates, which compound fastest. Put discretionary spending on hold to direct as much cash flow as possible towards extra debt payments until they are gone. Then, move on to other lower-rate debts. Having fewer monthly obligations frees up money to bolster emergency and retirement savings.

Diversify Your Assets
Having all your money tied up in one or two investments exposes you to more risk. Distribute appropriately across stocks, bonds, real estate, and cash accounts with a long-term perspective.

Work with a financial advisor to ensure your investment portfolio aligns with your time horizon and risk tolerance. They can help avoid having too much exposure in any one asset class or sector. Periodically rebalance your allocations to maintain optimal diversification. This helps smooth out volatility over the long run.

Limit Unnecessary Spending
Trimming discretionary expenditures allows you to devote more to stabilizing emergency, debt, and retirement savings. Avoid overextending your lifestyle.

Review non-essential spending categories like dining out, entertainment, vacations, etc. Look for ways to scale back and redirect that money to urgent priorities. Even small reductions add up substantially over time. Be wary of inflating your lifestyle when the economy seems strong, only to regret it later.

Protect Assets and Retirement Savings
Recessions can tempt people to spend retirement funds early or make them anxious about asset values declining. Proper planning helps safeguard your nest egg.

Consult a wealth management or estate planning attorney to ensure your investment allocations match your timeline and risk tolerance. They can recommend strategies to balance growth, income, and stability. Also, discuss contingency plans if forced into early retirement.

For older adults, review estate plans to ensure assets pass securely to heirs and provide lasting income. Update beneficiary designations on retirement accounts and insurance policies. Explore trusts and annuities to maintain control of assets if care is needed.

The goal is to ensure savings last despite market fluctuations.

Receive a Professional Assessment
Given the risks that remain, now is an opportune time for a comprehensive analysis of one’s financial health. Wealth planning lawyers have experience guiding clients through uncertain economies and volatile markets.

A specialist could evaluate income stability, debts, assets, insurance, estate plans, and other factors. The goal is to identify vulnerabilities and optimize recession resiliency.

With years of experience, Justin and his team at Stivers Law help clients proactively safeguard their legacies and prepare for the future. From wills and trusts to probate and financial planning, their estate planning services cover it all.

By partnering with a professional like Justin Stivers, you can ensure your estate plan provides maximum protection and peace of mind no matter what lies ahead.

To learn more about protecting your assets or recession-proofing your estate, visit Stivers Law in Coral Gables online today at https://miamiwealthplanning.com/.

About Justin Stivers
Justin Stivers is the owner and founding attorney of Stivers Law, located at 110 Merrick Way, Suite 2C, Coral Gables, FL 33134. He focuses his practice on wills and probate, trusts and trust administration, and financial and risk management services.

Justin takes a holistic view when working with clients, looking at investments, insurance, legacy preservation, and comprehensive solutions. With over 15 years of experience, Justin serves as a trusted advisor for estate planning and financial matters. Justin holds a JD from the University of Miami School of Law and licenses in wealth management, insurance, and real estate.

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